FTSE 100 has choppy week

The FTSE 100 has gone back and forth during the week, showing signs of struggling. If we can break above the top of the candle for the week, I think that means that we are going to continue to bounce around just above. If we break down below the hammer from the previous week, then the market could break down significantly to reach towards the 7500 level. The market also has a shooting star above that could spell a lot of resistance. At this point, I think that the market is probably going to be very noisy and being overextended means that you will need to be very patient with any type of move.

The market should have plenty of support underneath at the 7500 level, and I think that if we break down below there we could send this market all the way down to the 7000 handle. Otherwise, I think that we will eventually go looking towards the 8000 level above which is my longer-term target. I recognize that we had got ahead of ourselves, so taking a pause makes quite a bit of sense. If you are patient enough and keep your position size small, then I think you can hang onto this market and go long for a larger move. If we do break down, then we could be entering a consolidation phase overall. Ultimately, this is a market that I think should be looked at as offering value on dips.

FTSE 100 Video 11.06.18