August 14, 2022
  • August 14, 2022

The index continues to look solid

By on April 27, 2021 0

It’s a market that remains bullish, but it will more than likely be relatively volatile at the same time.

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

The FTSE 100 rallied significantly in Monday’s trading session, closing in on handle 6925. This is a good sign, as we were recently back to a previous break point, and have now rebounded significantly to prove that it matters. The top of the previous ascending triangle is what I’m talking about, and it’s very likely that people will take this as another sign that the market is ready to move higher. The size of the candlestick is not necessarily an anomaly, but it should be noted that it is larger than in recent days.

That said, we still haven’t cleared that huge red candle from last week, so it makes sense that we’re still a little cautious. At this point, by pulling out this candlestick, the market is again challenging the 7000 level. The 7000 level crossed on the upside is obviously the bulls’ goal as it would open a psychological barrier for a much larger move. Above that, the market is likely to see movement towards the 7250 handle, possibly even 7300 based on the “measured movement” of the previous ascending triangle, so technical traders will likely be aiming for this region.

If we were to turn around and fall below the 6800 level, then it is possible that people will pay close attention to the uptrend line of the ascending triangle, as well as the 50 day EMA that follows it. . For this reason, I think we will see massive support that a lot of traders will lean on if we get this pullback. I anticipate that in the short term we will likely see continued upward pressure attempting to remove the 7000 handle which may not happen the first time we get there. In other words, I believe that it is a market that remains bullish, but it will more than likely be relatively unstable at the same time. At this point, it is a market that cannot be bypassed until we have slumped significantly below the 50 day EMA mentioned previously.

FTSE 100