FTSE 100 choppy and positive on Wednesday

The FTSE 100 has gone back and forth during the trading session on Wednesday, slicing back and forth around the 7700 level. That’s an area that attract a lot of attention, and I think that it’s only a matter of time before we break above the 7750 handle. I think at this point it’s likely that we will break above there and then go looking towards the 7800 level, and then the 7900 level. Short-term pullbacks continue to offer plenty of support, and I think that the overall attitude of this market should continue to be positive, and that the consolidation that we have seen over the last several days has been a result of bouncing and then taking a bit of a breather. The market is trying to decide whether it is safe to go higher, which I think ultimately will be proven to be correct as stock markets in general have been rallying.

If we did break down below the 7600 level, then I think we make a serious move lower to the 7500 level. That is an area where I expect to see a massive “floor” in the market and breaking below there will snap the entire uptrend. That being the case, I would be very quick to short this market on a break down. However, it looks as if the buyers are making a stand finely.

FTSE 100 Video 07.06.18