The FTSE 100 has been essentially dead during the trading session on Monday as Europe continued to celebrate Easter. That being said though, the last couple of weeks we have seen a bit of a bounce, as we had formed a large ascending triangle recently. That suggests that we have further to go to the upside, which would make quite a bit of sense considering that the stock markets around the world have all been bullish for the most part. After all, the world is trying to focus on the reopening trade, so having said that it does make sense that we would see the FTSE 100 rise right along with the rest of the world.
The 50 day EMA is sitting at the 6825 level and rising right along with the uptrend line of the ascending triangle. The market continues to see a lot of noise, but at this point in time it appears that buying the dips will continue to be the way forward. The 6800 level above is an obvious resistance barrier, so if we can break above there on a daily close that I think we have much further to go, perhaps to the 7000 level rather quickly.
The uptrend line being broken to the downside could send the market down towards the 200 day EMA, but at this point in time that seems to be the least likely. Even if we do break down below there, I suspect that there will be plenty of buyers in the 200 day EMA which is currently sitting at the 6435 handle.
The FTSE of course is going to move right along with the idea of the United Kingdom reopening as it has been a leader when it comes to vaccination efforts, with perhaps the exception of the United States. With this being the case, the market should perform right along with the DAX and others in the European region, as they have been rallying as well. In fact, you could make an argument that the FTSE has a little bit of catching up to do. In general, stocks should not be shorted regardless, as they continue to get a boost due to the idea of the central banks out there flooding the markets with liquidity, which is all they have done over the last 13 years. To fight inflation, traders are buying assets.