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The FTSE 100 broke down significantly during the trading session on Friday, reaching down towards the 7100 level before bouncing significantly and forming a nice-looking hammer. This was the scene around the world, and the FTSE 100 wasn’t going to be any different. When you look at the chart, it’s not hard to see the resistance that extends to the 7300 level, so if we can clear that level I feel that the market should continue to go much higher, perhaps reaching towards the 7500 level. If we were to break above the 7500 level, the market can go much higher and it would begin a major bullish move.
If we were to break down below the 7100 level, that could unwind this market down to the 7000 level, an area that should be massively supportive as it is a large, round, psychologically significant number. This is a market that looks as if it is trying to form some type of basing pattern, and that should have buyers interested in it. I think that the market will continue the longer-term uptrend that we had seen previously, especially as it seems that money is starting to flow back into the UK.
If we were to break down to a fresh, new low, that would be a very negative sign and could send this market down to the 6500 level. Ultimately though, I think that it looks as if the buyers are going to be very resilient and I think that buying on dips should continue to be the pattern.
FTSE 100 Video 09.04.18
This article was originally posted on FX Empire