FTSE 100 breaking out during Wednesday session

The FTSE 100 has rallied a bit during the day on Wednesday, testing the highs and trying to break down to a fresh, new high. I think that the market will eventually continue to find buyers on dips, and that the 7700 level should be massive support. That’s an area that I think essentially a short-term “floor” in the market, and that eventually we will find buyers if we drop towards that area. If we were to break down below 7700, that of course would be a very negative sign. At this point though, I believe that the buyers coming into push towards the 7800 level initially, with my longer-term goal of 8000 still be in the longer-term target.

I believe that the market will continue to be a “by on the dips” market, as the British pound is extraordinarily cheap. I think that longer-term traders are looking to hold on for that psychologically important 8000 handle, but it might take a while to get there. If we were to break down below the 7700 handle, then I think that the market will go looking for support near the 7650 level. That seems very unlikely though, and therefore I would be a bit surprised if we tested that area. I believe overall this is a market that continues offer value for traders, and they will continue to look at it as such. Pay attention stock markets globally, because they of course will give us an idea as to what the overall attitude will be here in the FTSE.

FTSE 100 Video 17.05.18