FTSE Forecast Today 14/08: Testing Resistance (Chart)

(MENAFN- Daily Forex)

• The FTSE 100 has been very choppy during the trading session on Wednesday as the London exchange continues to test the 9200 GBP level, an area that has been significantly resistant over the last couple of weeks.
• I find London acting very much like other indices in that part of the world, where we are just simply going sideways as we don't have enough volume to truly make things exciting.
• After all, most professional traders at this point are more worried about their vacation plans and their beaches that they are currently sitting on than putting money to work in this market.

-p src= data-src="" alt="FTSE Forecast Today 14/08: Testing Resistance (Chart)" title="FTSE Forecast Today 14/08: Testing Resistance (Chart)" class="img-responsive center LazyLoading" lazy=loading>Technical Analysis

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That being said, this is a market that still looks very bullish from my point of view. The 9050 GBP level has offered significant support, and of course we have the 50 Day EMA rising at this point, currently sitting at 8961.5 GBP roughly. We have been in an uptrend for some time, so it does make a certain amount of sense that we might have to“work off the froth” from that massive move. A little bit of sideways action like we have seen over the last 3 weeks or so is perfectly normal.

If we can break above the 9200 GBP level, then the assumed“measured move” is for roughly 150 GBP, putting us at 9350 GBP. I don't see any reason why we cannot get there, and quite frankly it would not surprise me at all to see it go even further. This is a market that has been very bullish for a while, and as long as stock markets overall are fairly strong, there's no real reason to believe that London is some type of outlier.

That being said, if the market were to break down below the 9000 GBP level and then the 50 Day EMA, then we may have a bit of a pullback on our hands that might attract value hunting. That being said, this time of year tends to be very range bound in most markets, and I think that's probably what we are more likely than not going to continue to observe

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