The FTSE 100 went back and forth during the trading session on Friday, showing signs of volatility yet again. The 7400 level continues to be important, and because of this I think that it will attract a lot of volume. A break above the 7450 level sends this market looking towards the 7600 level again, which is the top of the larger consolidation area. I believe that the 7600 level above is massively resistive, but I also recognize that the 7200 level was the bottom of the consolidation that we’ve seen all year. If we cannot make it back down to the 7200 level, this is a signal that the buyer is going to try to build up enough momentum to eventually break out to the upside. Because of this, a move above the 7450 level has me buying the FTSE 100, and perhaps looking to not only reach the 7600 level, but eventually break through that level and go looking towards what the measured move would be: the 8000 handle.

If we break down below the 7350 handle, I think at that point we would be looking for the 7200-level underneath, and a simple return to the consolidation that has been so apparent in this market over the longer term. I think that the FTSE 100 of course is going to have a lot of noise due to the negotiations between London and Brussels, and that being the case the market could move rather rapidly in either direction. With this in mind, keep your position size small and add as it works out for you. Beyond that, you should also make sure to use stop losses at sensible regions. Overall, I like the buying opportunities that this market is presenting currently.

FTSE 100 Video 27.11.17

This article was originally posted on FX Empire

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