The FTSE 100 fell hard during the Monday session, slicing through the 7400 level, and reaching towards the 7350 level. It looks as if the FTSE 100 will continue to try to break down, but I see a significant amount of support near the 7300 level. If we broke above the 7220 level, at that point I think that the buyers would jump back in as it would be a bit of a confidence building exercise. However, with a significant momentum that we saw to the downside during the session on Monday, I suspect that the sellers are probably going to be very aggressive in this market. With that being the case, I believe in selling exhaustive looking candle’s above, especially if they occur near the 7400 level as it is a large, round, psychologically significant number.
Choppiness
No matter what happens, I think the one thing that you can probably count on this market is going to be significant choppiness. The market continues to look sick to say the least, least over the last couple of sessions. The 7300 level has been very strong though, so if we approach that level I would expect at the very least a bounce to appear. Markets continue to be very volatile, and of course highly leveraged to what happens with the British pound in the negotiations between the European Union and the United Kingdom, and more importantly headlines. I think that the volatility will only get worse, not better, so having said that small trading positions will probably be the best way to deal with this market.
FTSE 100 Video 25.7.17
This article was originally posted on FX Empire