The FTSE 100 gapped higher at the open on Monday, and now looks ready to test significant resistance at the 7460 handle. I think given enough time, we will continue to reach towards the 7500 level above, and at this point short-term pullbacks will probably be buying opportunities for those who are willing to look for value. The 7400-level underneath should be support, and therefore I don’t have any interest in shorting this market until we break down below that level. I don’t think we are going to be able to do that in the short term, and as a result I think that we are trying to build up a larger position for a longer-term move. That position is being built up over the longer term, and I think that traders have been adding as we go long. The market will more than likely struggle at the 7500 level, as it is a large, round, psychologically significant number. That’s an area that will attract a lot of attention, and therefore cause the reaction.
That being said, we will probably continue the upside momentum, but pullbacks continue to offer value longer-term. If we were to break down below the 7400 level, I think the 7350-level underneath will be the next target. Based upon the massive W pattern underneath that formed at the 7300 level, I think that the market is ready to continue the longer-term uptrend, and therefore no interest in shorting. If we did breakdown below the 7300 level somehow, at that point I would become very short of what I think is a crumbling market at that point.
FTSE 100 Video 12.12.17
This article was originally posted on FX Empire