FTSE 100 pulls back during the week only to find more buying pressure

The FTSE 100 has pulled back during the week initially, only to find support at the 7000 handle. By doing so, it looks as if the buyers are trying to make a stand in that area, and ultimately, I believe what we are about to see is the longer-term uptrend trying to continue. With that in mind, I am a buyer, but I also recognize that it might take a bit of work to make this happen longer term. I recognize that there is a significant amount of resistance near the 7250 level, extending to the 7300 level. However, if we were to break above that level I think that the market will probably go looking towards 7500. Market participants continue to be jittery due to the potential trade war between the United States and China, but right now it seems as if some of that tension is starting to abate a bit.

The FTSE 100 will be any different than the other stock indices around the world, reacting positively to cooling tensions between the 2 superpowers. However, the market looks likely to be a bit messy, so using a small position initially is probably the way to trade this market and adding only when you’ve been proven correct is probably the way to go. However, if we were to turn around a breakdown below the 6800 level, that could be very negative and send this market much lower. So far, that doesn’t look likely to happen.

FTSE 100 Video 09.04.18