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The FTSE 100 rallied significantly during the trading session on Thursday, gaining over 0.6% by the time I reached my desk. The 7075 level looks to be a short-term resistance barrier, but when I look at the hourly chart over the last several days, if we can break above there that would complete a nice bottoming pattern that traders will more than likely take advantage of. I think that if we can break above that level, the market will probably go looking for the 7250 level given enough time. I do like buying pullbacks, as I believe that there should be plenty of support near the 7000 handle now.
Eventually, if we can break above the 7258 level, the market should then go to the 7350 handle. The market is very strong over the last couple of sessions, so I do think that eventually the buyers will take over. I like the FTSE 100, and believe that the progress in the negotiations between the EU and the UK are probably going to continue to help propel this market higher as some of the fear will be abated. Beyond that, if we can get more signs of cooperation between the United States and China, that should lift all stock markets around the world, and that of course will include the FTSE 100. I believe that this market will chop a bit, but those pullbacks at this point I think will offer value that most traders are willing to take advantage of. If we were to break down below the 7000 level, that could change things, and I would have to reevaluate.
FTSE 100 Video 30.03.18
This article was originally posted on FX Empire