FTSE 100 CFD market quiet while European banks closed

While the European banks were closed for the holiday, the market for the FTSE 100 CFD rallied a bit. However, we started to see a bit of trouble at the 7120 level, and it looks as if we are a bit exhausted. I think that the market should continue to find plenty of support at the 7000 handle, but if we broke down below there I think that we could continue to go much lower. I believe that the market will continue to move based upon whatever headlines are crossing the newswires about the potential trade war between the United States and China, and that of course is a fluid situation. I believe that based upon what I’ve seen in the currency markets, we may see a bit of a pullback. However, a break above the 7120 level should send this market towards the 7250 handle over the next several weeks.

In other words, this is a market that continues to see a lot of moving pieces, so therefore I be very cautious about my trading size, as volatility is starting to pick up around the world. The FTSE 100 of course won’t be any different, and I think that you should only build up a position once the market moves in your favor. Until then, caution is the better part of valor, and should be the most important thing. By keeping your position size small, you can ride out the massive amounts of volatile swings that we are almost sure to have.

FTSE 100 Video 03.04.18