FTSE 100 Forecast 05/2:FTSE 100 Rallies To Fresh High Again

(MENAFN- Daily Forex) The FTSE 100 made a fresh high during the trading session on Wednesday, showing that there are plenty of buyers out there waiting to get involved in this index 100

The FTSE 100 made a fresh high during the trading session on Wednesday, which in and of itself is pretty bullish. But it is worth looking at through the prism of a market that gave up half of its gains. What does this tell us? It tells us that there is a little bit of uncertainty out there. However, the trend is still very much the same as it has been for a while.

I think most of the rally during the day was driven by healthcare and that, along with energy, isn't necessarily the most positive of outlooks. Shell, of course, gaining almost 2% in the FTSE 100 has helped, but healthcare gaining is not really what you want to see for an explosive move to the upside Outlook and Central Bank Influence

Regardless, the Bank of England's recent shift towards easing does provide a little bit of a structural tailwind for stocks in London. Therefore, I think it's also worth noting that the index's high dividend yield ends up being increasingly attractive for investors.

There does seem to be some resistance at the 10,500 level. It makes sense, there's a little bit of psychology there. But really, I think you have a scenario where the pullback at this point in time has to be thought of as a potential buying opportunity in a bullish market to begin with.

Do keep in mind that we have a Bank of England interest rate decision on Thursday, so that is worth watching. But any knee-jerk reaction here, I'm probably going to look into taking advantage of.

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