FTSE 100 rallies significantly during the week, breaking above shooting star

The FTSE 100 rallied during the week, closing towards the top of the range. By doing so, it looks as if we are ready to try to break out to the upside, and perhaps take on the 7300 level. That is an area that being broken to the upside would free the market to go to the 7500 level. I believe the pullbacks are buying opportunities, but it’s obvious that it is going to be a bit difficult to gain footing initially. Once we do, then I think that it becomes more of a “risk on” type of market. I believe that the 7000-level underneath is going to be the “floor” in the market, and that we would perhaps try to go looking towards the 7800 level again. I believe that ultimately this is a market that is going to go with the overall risk appetite of traders around the world. I believe that the situation between the Americans and Chinese will continue to drive where this market goes, just as the overall attitude of the British pound and the British economy well.

If we begin to worry about trade wars again, that will obviously punish most stock markets, and it won’t be any different in this market. I think that the FTSE 100 will be just as sensitive as the DAX, the NASDAQ 100, and any other index that you follow. I believe that we are trying to form a nice base.

FTSE 100 Video 16.04.18