FTSE 100 a bit sideways on Tuesday

The FTSE 100 has broken above the 7500 level rather recently, showing signs of longer-term bullish pressure, but we also seem to be struggling with the 7600 level. The market has been benefiting from a softer British pound, and if the GBP/USD pair breaks down rather significantly, especially dropping below the 1.35 handle, the market will continue to buy the FTSE 100 as it should show a bullish situation with cheap exports flowing out of the United Kingdom.

I think that short-term pullbacks continue to be buying opportunities, with the 7500 level being a significant support level. However, I think that even if we break down below that level it’s likely that we will see 7400 offer support also. The FTSE 100 should continue to go to the 7600 level, and then longer-term to the 8000 handle. 8000 is my longer-term target, but I think it’s going to take quite some time to get there. This is a market that’s been in an uptrend for quite some time and has followed a nice and steady pattern to the upside. I believe in more of the same, at least until shown differently on the chart, which of course we are not seeing anytime soon. In fact, I believe that the uptrend is intact if we can stay above the 7200 level, so until we break down below there I think that the market continues to find value hunters coming in and taking advantage of that value when it appears.

FTSE 100 Video 09.05.18