FTSE 100 rally slightly during the trading session on Friday in the CFD market

The FTSE 100 went back and forth during the trading session on Friday, at least in the CFD market. It was a bank holiday in Europe, so obviously the liquidity would have been thin. It looks as if the 7000 level could offer a short-term support level, and I think that the market will continue to be bullish in the short term. I recognize the 7250 level as significant resistance though, and I think it will be difficult to break above there. If we were to do so, then I think we can go much higher. A breakdown below the 7000 level could be rather negative, and I think that we could see the market unwinding down to the 6875 handle.

The market participants continue to be very jittery due to talks of trade wars, but eventually I think it will work itself out, and we will see more of a “risk on” market. Until then, keep your trading position size rather small, and then add on dips if it goes higher. Otherwise, we may have to clear the decks and look for support closer to the 6850 level. A breakdown below there would be very negative, and we could send this market much lower at that point, perhaps down to 6800, followed by 6500. The markets will of course be paid attention to potential inflationary figures coming out of the United Kingdom, as the Bank of England looks likely to raise interest rates.

FTSE 100 Video 02.04.18