FTSE 100 grinds higher after initial dip on Thursday

The FTSE 100 pulled back slightly during the trading session on Thursday, reaching towards the 7725-handle underneath before bouncing a bit. Now that we have bounce this way, the 7700 level looks very likely to be the “floor” in the market. Longer-term, I think that the market will probably try to go towards the 8000 handle, but we have several levels between here and there that could cause reactions. I believe that the market should continue to find buyers on dips, as I think that the overall uptrend continues going forward. I believe that it’s not until we break below 7700 level that you would have to “reset”, looking for another support level. I think that short-term traders will continue to look at small dips as an opportunity. I believe that the 7800 level above is the initial target, followed by every 50 points or so until we reach the 8000 handle.

I believe that the entirety of the uptrend is intact if we can stay above the 7500 level, an area that I think represents the “hard floor” of the entirety of the uptrend. If we were to break down below that level, then I could be convinced to start shorting. The GBP/USD pair has been rather soft overall, and that of course makes British exports cheaper. I believe that stock markets in general should continue to attract some attention, so as long as that’s the case, the FTSE 100 one act any different.

FTSE 100 Video 18.05.18