FTSE 100 falls during Friday session

The FTSE 100 tried to rally during the trading session on Friday, but then turned around to test the 7700 level. If we can break down below that level, the market is likely to continue going even lower, perhaps reaching towards the 7600 level, and then possibly the 7500 level. The shooting star the weekly chart of course is a very negative sign, and I think that we are far overbought at this point. I think a pullback makes quite a bit of sense, so I think at this point it’s likely that the pullback should attract value hunters given enough time. I looked a large come around, psychologically significant figures to take advantage of that, so be aware of the idea of short-term selling offering longer-term value.

I think that the market will continue to benefit from a cheap British pound, as it helps with the British export markets, and that of course helps the bottom line for British companies. We do have an interest rate hike coming out of the Bank of England, so that is a bit of a headwind when it comes to the FTSE 100, but all things being equal, it is still a very bullish in positive market and I think it’s only a matter of time before buyers get involved to this market. In fact, other than a short-term scalper, I don’t have much interest in shorting this market.

FTSE 100 Video 28.05.18