The FTSE 100 was closed during the trading session on Tuesday of course, as we continue to celebrate the holidays. In the United Kingdom it’s Boxing Day, and that of course keeps the markets close. I believe that looking at the Friday reaction to the 7600 level is important, as it was a bit resistive. However, I think it’s only a matter of time before the buyers return, and therefore I look at this pullback is a potential buying opportunity. Once we clear the 7600 level decidedly, I believe we then go to the 7800 level above, and then the 8000 level.
The 7600 level is the top of the recent consolidation going back several months, so I think that it’s only a matter of time before we build up the necessary momentum to continue going higher over the longer term. I think that the overall attitude of the market is bullish, so look at these pullbacks as value, as value is the best way to trade the stock markets in general. I think that eventually we will go to the 8000 handle, mainly because of the measured move from the previous rectangle.
However, if we break down below the 7500 level, I think the market would go looking towards the 7425 level again for support. At this point, you are probably better off looking at these dips as small opportunities, and then add to them as we go higher. Adding slowly is the best way to build up a large position to take advantage of what has been a longer-term uptrend in the FTSE 100.
FTSE 100 Video 27.12.17
This article was originally posted on FX Empire