FTSE 100 rallies during the trading session on Thursday
The FTSE 100 rallied significantly during the last couple of sessions, as it looks like trade war tensions are drifting a bit lower. Perhaps the market had overreacted a bit, so it makes sense that the FTSE 100 would continue to gain. If you look at the hourly chart that I have in front of you, you can make out a potential channel that the market will follow, and we are towards the top of it. Because of this, we may get a bit of a pullback, but that should be a buying opportunity. I think that the 7000 handle should continue to offer a bit of a “floor” in the market, and therefore keep the buyers interested.
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If we broke down below the 7000 level, we could drop down to the 6925 handle, an area that has been important more than once. I think that longer-term, the buyers will probably try to push this market towards the 7300 level, and then perhaps even the 7500 level if things go well. Obviously, today is the jobs number in the United States, so that can have a major effect on the overall risk appetite of traders around the world. I think that the markets will continue to be a bit jittery, but certainly it looks as if the upward momentum has returned. I think that the dips will more than likely attract a lot of attention, and I think that we will continue to benefit from adding slowly to a core position.