FTSE 100 continues to see a lot of noisy behavior, but at this point, the markets looks as if it sees buyers underneath to keep it afloat.
FTSE 100
FTSE 100 has been noisy during the trading session on Friday as we continue to see a lot of choppy behavior. Overall, I believe this is a market that still has plenty of upward momentum just waiting to happen, but I also recognize that we have a situation where the market may need to consolidate a bit in order to build up the necessary momentum to go to its final destination.
As things stand right now, it looks like the consolidation move suggests that we could make it to the 10,400 level, but that does not necessarily mean we have to do it tomorrow. The speed of the market obviously will be determined by forces larger than ourselves, so we have to look at it through that prism.
Building Momentum and Long-Term Targets
I do believe that the 10,000 level is currently going to end up being supported, especially with the 50-day EMA racing toward it and of course the psychology attached to it. Over the longer term, I would not be surprised at all to see the FTSE 100 rise to the 11,000 level.
And although there are a lot of geopolitical concerns at the moment, it is not really based around the United Kingdom. Because of this, I think you have to look for some type of buy on the dips scenario as we have seen multiple times.
The market has been in an uptrend for a while now and the fact that the retail sales in the United Kingdom recently came out hotter than anticipated suggests that there are going to be plenty of buyers willing to get involved every time we see a little bit of offer in a market that quite frankly is probably primed to continue what has been a very strong uptrend since April. In fact, this looks a lot like the US stock market, so I think they are all moving in tandem.
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