FTSE 100 rallies to open the week

The FTSE 100 has rallied a bit during the day on Monday, reaching towards the 7760 handle before pulling back towards the 7725 level and rallying again. If we can break above the 7775 level, I think at that point the market is probably going to continue to go higher, reaching towards 7800 and then eventually the 7900 level. Pullbacks at this point continue to be supported at the 7700 level underneath, and beyond there at the 7650 region. Obviously, Great Britain is an interesting place to invest right now, because of the British leaving the European Union.

Because of those headlines coming out about leaving the European Union, it’s likely that the market will continue to be very noisy overall. This consolidation area has been reliable over the last several days, so I think until we get out of there you need to look at this as a market that you can go back and forth then, perhaps trading little bits and pieces. Eventually, once we break out of that area, the market should continue to go further in whatever direction it breaks. If we can break above the 7775 handle, I think that the move will be much quicker than to the downside, unless there is some type of major global event that scares people away from equities.

Longer-term, if we do break down I think that the market probably goes down to the 7500 level. That’s an area that should attract a lot of attention based upon the large, round, psychological importance of the number. Longer-term though, I still think we are looking towards the 8000 handle.

FTSE 100 Video 12.06.18