The British index initially fell on Wednesday, but continues to find support above the 7500 level. The 7500 level is a large, round, psychologically significant number, and should continue to be important for traders. If we can stay above there, I think that we will eventually bounce and go looking for the 7600 level. Ultimately, the market should continue to show interest underneath, especially considering that we had gapped above the 7500 level just 2 days ago. Given enough time, I think that the buyers will find a reason to go long, but I do recognize that if we drop down below the 7475 handle, the market could have an extended pullback, perhaps looking for support at the 7400 level.
The British pound weakening as of late has helped the FTSE 100 also, but I think that the longer-term move is in effect, and that we should continue to see dips looked at as value. Ultimately, I think that the market should continue to show signs of volatility, but I think that given enough time every time we pull back there should be buying opportunities on short-term charts. Beyond that, it’s likely that the market is more of an investment than a short-term “smash and grab” opportunity. This is a market that has been gently rising over the last couple of weeks, and that of course is a good sign for an uptrend as it’s not overextended. Stock markets worldwide have continued to show strength, and the FTSE 100 of course won’t be any different as the British pound being historically low should continue to help with exports of the UK, which of course helps the FTSE 100 as it is chocked full of export companies that are highly influential.
FTSE 100 Video 12.10.17
This article was originally posted on FX Empire