FTSE 100 goes sideways in quiet trading on Monday

The FTSE 100 went sideways during the trading session on Monday, dancing around the 7375 level. We have been in an uptrend for some time, and I think that should continue to be the case. I like buying pullbacks, and I believe that there is a significant amount of support near the 7250 handle. I think that the level should offer a lot of support for those who are patient enough to see this happen. However, we may not even get down to that area, so I think that short-term pullbacks in general should be thought of as value.

I believe that the market will eventually go looking towards the 7500 level, which should be resistive due to psychological resistance. I believe that the market will continue to try to reach these round numbers, as the FTSE 100 tends to be very technically driven. The alternate scenario of course is that we break down below the support underneath, which I think is more of a “zone” that extends down to the 7200 level. A breakdown below that level should send the market down to the 7000 handle after that. The 7000 level is what I continue to look at as the “floor” of the uptrend, and if we were to break down below there it would be rather catastrophic. Ultimately, if we were to break down below there I’m not sure where we would end up, but it would obviously be much lower. I believe that short-term pullbacks continue to be a value play that people will take advantage of.

FTSE 100 Video 24.04.18