FTSE 100 rallies on Friday

The FTSE 100 exploded to the upside during the trading session on Friday, making a fresh, new high and I think that we will continue to go much higher. I think that the 7500-level underneath should continue to offer a bit of support, and a bit of a “floor” in the uptrend line for short-term traders. Ultimately, I think that the market should continue to go looking towards the 7600 level, and then eventually the 7800 level. I believe that the market is going to continue to be noisy, but as the British pound has been falling, it makes those British exports cheap, which of course helps the FTSE 100 longer term.

I believe that if we did breakdown below the 7500 level, then we could see the market reach down towards the 7400-level next. Longer-term though, I do think that the buyers will take over and as the GBP/USD pair looks to continue the bearish pressure, I think that will continue to put bullish pressure over here. Ultimately, the 8000 level above is probably the target, but in the short term I anticipate that the 7750 level will be the short-term target. I continue to buy short-term pullbacks, as they offer value in what seems to be a very strong uptrend and has been for some time.

The attitude of this market has been bullish for several months, and I think that nothing has changed, other than we are now getting currency tailwinds adding to the bullish side as well. I believe that the FTSE should rally for most of the summer.

FTSE 100 Video 07.05.18