The FTSE 100 has rallied a bit during the course of the trading session on Thursday, raking above the 50 day EMA and piercing the bottom of the uptrend line from the previous ascending triangle.
That being said, we gave back some of the gains and it now looks as if we are going to continue to struggle in general. If that is going to be the case, then it is likely that this market will continue to see a lot of choppy behavior, but with all the algorithmic trading that we have seen as of late, it is not a huge surprise. The FTSE 100 will continue to be held hostage by the Delta variant situation in the United Kingdom, but it should also be noted that it seems to be getting better.
If we break down below the lows of the trading session on Thursday, then we could go looking towards the 6800 level. That of course would be a very negative sign, but we also have the 200 day EMA in that general vicinity that will cause quite a bit of noise as well. With that being the case, I like the idea of looking at that area as a potential value region, but I would also need to see other markets start to pick up momentum at the same time.
On the other hand, if we break above the highs during the trading session on Thursday, then it is likely we go looking towards the 7100 level above, which is not only a large, round, psychologically significant figure, but it is also where the top of that triangle had been sitting. Because of this, I think it is very likely that we will continue to see a pushback in that general vicinity, as the 7100 level had been so difficult to overcome until recently. If we do break above there, then it is likely that the market could go looking towards the 7200 level above there, which is where we had seen a bit of a shooting star formed. Because of this, I think it is more likely than not going to be difficult to go higher, and if we do get the bullish momentum, it is probably going to be more or less a grind higher than anything else.