FTSE 100 rallies to make fresh, new highs on Thursday

The FTSE 100 initially dipped on Thursday but found enough support at the 7640 level to take off to the upside. We made a fresh, new high and that of course is a very strong sign. I think that the market will continue its trajectory towards much higher levels and that pullbacks continue to offer value. · FX Empire

Christopher Lewis

Updated Thu, May 10, 2018, 10:35 PM

The FTSE 100 initially fell during the day on Thursday, reaching down towards the 7640 level before turning around and showing signs of strength. The market has broken to a fresh, new high, and it looks very likely that we are going to continue to go higher based upon this. I think that the 7800 level above is the short-term target, but eventually we will probably go to the 8000 level. I think that the 7600 level is significant support, extending down to the 7500 level. It’s not until we break down below the 7500 level, then I think the trend turns around, but ultimately I think that the market continues to find plenty of reasons to go higher, especially with the British pound being soft overall.

The FTSE 100 has been extraordinarily strong over the last couple of sessions but was preceded by a slow and reliable grind higher. I believe that the 7500 level is essentially a “line in the sand” for a market that continues to show positivity in general. If we were to break down below there, then I think the FTSE 100 could breakdown rather significantly, perhaps breaking down rather drastically. I believe every time we pull back it offers value, and the traders will be more than willing to jump in and pick up this type of value. Longer-term, I would add every time we make a fresh, new high.