The FTSE 100 has gone back and forth during the trading session on Thursday, using the 7700 level as support. We also saw a bit of resistance at the 7775 level, so it looks very likely that we are going to continue to bounce around in this tight range. Ultimately, I believe that we are trying to form some type of base from which to take off from, and I think that once we cleared the 7775 handle, the market is very likely to go looking towards the 7900 level after that. Overall, I think that the FTSE 100 will continue to be strong, but there is going to be the occasional headline out there that could cause issues, such as we had seen during the Thursday trading session.
The 7600 level underneath continues to be supportive as well, so I think it's only a matter of time before the buyers get involved. Because of this, I remain bullish, but I also recognize that it will be noisy. I would be very cautious about jumping into a huge position, but I would not be adverse to buying a core position, and then adding slightly as the market makes fresh, new highs on the hourly chart. Longer-term, I think we are going to go hunting the 8000 handle, but it could take a significant amount of time as there are so many concerns around the world it comes to geopolitics, and perhaps even trade wars.
FTSE 100 Video 08.06.18
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.
