FTSE 100 testing highs during the week

By:

Updated: May 19, 2018, 07:27 UTC

The FTSE 100 rallied again during the week, forming the eighth green candle in a row. This is a very bullish market, and at this point although we have gotten a bit overextended, I’m not willing to sell any pullback as I think there is more than enough buying pressure underneath the push this market to the upside.

The FTSE 100 has reached towards the highs again, and now I think we are getting ready to break out to the upside. However, we may get a short-term pullback to build up the necessary momentum to go much higher. The 8000 level is my longer-term target anyway, and even if we do get the pullback I think it will only offer a bit of value that we can take advantage of. I like the idea of buying the FTSE 100 as it is one of the best-performing stock markets that I follow here at FX Empire, and of course the GBP/USD pair looks likely to break down, causing exports to be cheaper out of the United Kingdom.

Longer-term, we have been very bullish in this market, and the significant bounce that we have seen over the last two months should continue to be in the back a traders minds as they look for value on those dips. It’s very difficult the short this market, and I believe that the volatility in the marketplace is most certainly favoring the upside overall, as currency markets will give a hand as interest rates in the United States continue to grind higher. We desperately need some type of pullback, but if we make a fresh, new high, you can’t argue with that signal either, as we are more than bullish it strong in this market as much everybody else in the world can see.

FTSE 100 Video 21.05.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.