The FTSE 100 as you can see gapped higher at the open on Thursday, but then pulled back to fill that gap not once, but twice. We then bounced to show signs of strength again, as we continue to grind higher. There is an uptrend line underneath, that has supported this market for several weeks, as we continue to see the market try to reach towards the 7800 level. I think if we break down below the uptrend line, we could see a bit of a pullback, but I think there is a hard "floor" in the 7600 region. The British stock markets continue to offer value based upon a historically cheap British pound, so I think that given enough time, buyers will return to this market.
There are headlines coming out of the negotiations between the EU and the UK, that will obviously have a certain amount of influence on this market, so I think that headlines will continue to be a concern. However, it's obvious that we are in an uptrend, and I don't see that changing anytime soon. The market will eventually go looking towards the 8000 level above, and ultimately that is my longer-term target. However, it will remain noisy, so I would suggest perhaps having a small position in adding slowly as we go along. I don't think that the market is one that you can short, least not until we break down below the 7600 level, something that doesn't look very likely to happen anytime soon.
FTSE 100 Video 12.01.18
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
