The FTSE 100 initially fell during the trading session on Wednesday to reach down towards the 50-day EMA. The 7000 level continues to offer support as well, so with that in mind it is not a huge surprise that we have seen a little bit of a bounce. Furthermore, we are in the midst of an ascending triangle, so we still continue to see a lot of back and forth.
The market has also been in an ascending channel, so t looks likely that we are going to continue to follow. The uptrend line of the channel lines up essentially with the same uptrend line of the triangle, so we have a massive amount of support sitting just below current levels. Because of this, it looks as if there is massive support all the way down to roughly 6900 or so. Because of this, I still prefer buying this market, but we also have a significant amount of resistance just above that focuses on the top of the ascending triangle and the 7100 level.
Stock markets in general looked a little tired during the trading session, so the FTSE 100 would have been essentially the same thing as anywhere else. With that in mind, there are a lot of questions when it comes to the global economy, so that will show itself in this market as well. I think at this point we need to pay close attention to the triangle, because it could give a bit of a “heads up” as to where we are going next. If we can break above the 7100 level, then I believe we will simply continue to grind in the same upward channel that we have been in. On the other hand, if we do break down, then we need to pay close attention to the 200-day EMA underneath, because that is an indicator that a lot of people pay attention to. Furthermore, you need to pay attention to other markets in the European region, as well as major US indices, as they all tend to move in the same basic general direction. If you see a lot of selling in indices globally, the FTSE 100 will not be any different.
