FTSE 100 continues to grind sideways overall in bullish attitude

The FTSE 100 rallied a bit during the day on Tuesday, reaching towards the 7750 level, at the top of the overall consolidation region. If we can break above there, and I think we will eventually, the market probably then goes to the 7600 level. Currently, the 7700-level underneath is massive support, and I believe it will continue to hold. · FX Empire

Christopher Lewis

Updated Tue, May 15, 2018, 10:55 PM

The FTSE 100 rallied initially on Tuesday, but then turned it right back around, only to find buyers again. I think there is significant support at the 7700-level underneath, and I think that the market will continue to find that area to be interesting. The GBP/USD pair broke down significantly and the Forex markets during the day, and that has money looking to the London stock exchange. I believe that the FTSE 100 continues to be very bullish overall and breaking above the 7700 level is of course a very strong signal, and I think that the market is ultimately going to go looking towards the 8000 handle.

If we do break down below the 7700 level, I think the market could go down to the 7650 level. That’s an area that has been supportive in the past as well, something it’s only a matter of time before we get involved to the upside. I like the idea of buying and bits and pieces and adding as we go along. I don’t have any interest in shorting, as I believe that the 7500-level underneath is the “floor” in the market. If we were to break down below there, then the market would unwind rather drastically. With that being the case, I would be very short of the market at that point. However, that seems to be very unlikely to happen.