- The FTSE 100 has been slightly positive during the course of the trading session on Wednesday as the 8,900 level continues to offer massive resistance.
- All things being equal though, we also have to ask questions as to whether or not we are starting to fall.
- If we do break down below the 8800 level, then we could go look into the 50-day EMA, which is closer to 8,690.
That being said, with the way indices have been behaving over the last several months, but especially the last several weeks, it’s very likely that eventually we will get an attempt at a breakout. This is a market that continues to watch the area above very carefully, so this is a situation where momentum could be a major factor here in London.
On a Move Higher from Here
On a daily close above the 8,900 level, I suspect that the FTSE 100 will continue higher. That opens up a move to the 9,000 level probably rather quickly. Anything above there, then we could be talking about a move to 9,200 after that. I like the idea of buying dips at least as far as the world is right now, but you also have to keep in mind that there are so many different moving pieces that we have to be cautious and take advantage of value when it shows up. I’ve got no interest whatsoever in shorting this market, at least not at this point. If we get some type of really ugly candlestick and the headlines and economic numbers are the right kind, then maybe I’ll short it. But right now, it’s just too bullish to short and there is the old axiom, never short a quiet market. That being said, you will also need to be a very patient trader going forward.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
