August 3, 2022
  • August 3, 2022

Index continues to flirt with 7000

By on May 4, 2021 0

Expecting gains would probably be too much.

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The current volatility creates great opportunities for stock trading – don’t miss this opportunity!

The FTSE 100 fluctuated on Monday in very volatile and indecisive trading. Currently it looks like level 7000 above will continue to cause serious problems, so it won’t be easy to get over it. If we do, however, that would obviously be a very bullish sign and could open a much bigger move. At this point, you can see that I have drawn a line on the chart that extends to the 7200 level, which is the movement measured from the ascending triangle below. The 50 day EMA walked along this uptrend line in the ascending triangle, so everything looks very sharp and tidy for a typical technical analysis.

In the meantime, I think we are bouncing between the 6800 level at the bottom, which should now be favorable due to the fact that it was so resistive before, and has even seen a strong reaction already. This tells me that the market is very likely to continue to find buyers if there is a dip. Breaking above the 7000 handle opens up the possibility for the market to go much higher. The 7200 level above will more than likely be difficult to overcome, but if we do, and if history has anything to say, you can see that the 200-day increments in the past have mattered. , and we should therefore think that the 7400 level is then developed.

If we fall below the 50 day EMA it opens a move towards the 200 day EMA, which is currently only breaking through the 6500 level. We are in an uptrend overall and the stocks continue to see money pouring into them all over the world, so I don’t see why the FTSE would be any different. Also, many traders out there are looking for “reflation trading” by buying anything they can get their hands on. The general attitude of the markets has been bullish for some time, but they have also been very messy. You should keep this in mind when trading this market because to expect gains would probably be a bit too much. All that being said, I would get much more aggressive above the 7000 grip as that would be a major change.

FTSE 100