The FTSE 100 finds buyers after initially selling off on Wednesday

The FTSE 100 was very noise over the last couple of sessions, but on Wednesday managed to break down below the 7000 handle. By doing so, the market found buyers and broke to the upside later in the day, showing signs of volatility again. · FX Empire

Christopher Lewis

Updated Wed, Apr 4, 2018, 10:45 PM

The FTSE 100 initially broke down during the trading on Wednesday, but you can see rallied rather significantly. The market continues to be very noisy, but global equities in general have shown a resiliency that is encouraging. With the jobs number coming out tomorrow, there could be a bit of noise in this market, but it will be peripheral more than anything else. I think that the FTSE 100 is trying to form a large bottoming pattern, and a break above the 7100 level should project for a move to the 7250 level, perhaps even the 7350 level after that.

I believe at this point, it’s probably better to buy short-term pullbacks as we should see plenty of opportunities. I think that the 7000-level underneath is the beginning of support, so look at that as the initial place to start buying. Longer-term, I think that we should then continue to go towards 7500, but obviously there are a lot of concerns when it comes to trade wars in general, and that should continue to be one of the main drivers of stock markets around the world. Obviously, the volatility has people a bit scared, so I would keep my position size a bit small. While things will be difficult, I think you can add to your position once it is proven to be correct. Otherwise, if we were to break down below the lows, then I think the market unwinds to the 6800 level, which is massive support in its own right.