The FTSE 100 initially tried to rally during the session on Monday, but found enough resistance near the 7550 level again to roll over and continue the overall consolidation that we have been observing over the last several days. It looks likely that we will continue to find buyers on dips, as the 7500 level continues to be massively supportive. I believe that the market will continue to find buyers underneath, and eventually reach towards the 7600 level. However, we don’t have much of a catalyst right now, so this is a symbol back and forth short-term trading opportunity for scalpers. It’s going to be difficult to hang onto a trade for any significant length of time until we clear one of the major barriers, but right now it doesn’t look likely to happen.
If you are a scalper or short timeframe trader, then you might be able to find trades going in both directions. However, I would favor the upside as the overall trend is positive. If you are patient enough, you should get the break out to the upside and above the 7550 level on a daily close to start taking long positions again. If we break above there, then the market should go to the 7600 above, perhaps even the 8000 level over the longer term. Ultimately, this is a market that continues to attract a lot of value hunters, and I believe that the we will continue to see this play out over the longer term. If we did breakdown below the 7500 level, I think it’s not until we break down below the 7480 level that we would have to worry about the sellers coming in. Even then, we would probably find plenty of support near the 7400-level underneath.
FTSE 100 Video 24.10.17
This article was originally posted on FX Empire