FTSE 100 breaks out during the weekThe FTSE 100 initially fell during the week but found enough support at the 7200 level to start back to the upside, showing signs of strength then eventually broke out to a fresh, new high.
The FTSE 100 initially pulled back during the week, testing the 7200 level. That’s an area that caused the bullish pressure to break above the 7250 level, and then eventually the 7300 level. We have even broken above the 7350 handle, which is a very bullish sign. The market looks likely that we continue to go higher, reaching towards the 7500 level. That’s an area that is crucial. Ultimately, I think that short-term pullbacks are buying opportunities as well, and I think that given enough time the FTSE 100 will continue to climb. The 7800 level was the most recent high, and I think that we will continue to try to reach their and beyond to the 8000 handle.
However, the market is going to be very noisy and I think that this is more of an investment than anything else. The FTSE 100 got a bit of a boost as Mark Carney suggested that perhaps the Bank of England isn’t as hawkish as once thought, and if that’s the case cheap money should continue to push money into stock market trades in England. The 6800 level now looks to be the “floor” in the market, and now that we have made a “higher high”, breaking above the resistance barrier, I think that fresh money is starting to go to work in London. Ultimately, I think that the market should continue to favor the upside if we can stay out of a trade war and of course other geopolitical concerns such as Syria calm down a bit.