The FTSE 100 rallied during the trading session on Friday to break above the top of several hammers, which is a very bullish sign. The market has seen a lot of support near the 6600 level, which also features the 50-day EMA. Having said all of that, it does make sense that we would bounce, especially considering that we are in a bit of an uptrend. Granted, it has been relatively sloppy on the way up, so it is likely that we would see more of a grind higher, which is exactly what has played out.
If we can break above the top of the candlestick on Friday, it opens up the possibility of a move towards the 6800 level above. The 6800 level has been the most recent swing high, so it makes sense that it would be a target on the way back up. If we can break above there, then we will almost certainly go looking towards the 6900 level above, which has been massive resistance. By doing that, the market is likely to go looking towards the 7000 level, which has been my longer-term target for ages now. The FTSE 100 has been very noisy to say the least, and if you think about it, the FTSE should be.
The United Kingdom has had good vaccination efforts that have far outperformed some of its peers, so the thinking is that the UK economy should open up quicker. Furthermore, Brexit did not destroy the UK, unlike what some people had been preaching. Because of this, the FTSE 100, British pound and most things British for that matter, have all been sold off far too much. With that being the case, I think that it is only a matter of time before the market reaches towards that big figure. I also recognize that there is a lot of support underneath at the 6600 level, and then again at the 200-day EMA, which is closer to the 6425 handle. At this juncture, the candlestick for Friday certainly looks as if we are starting to see momentum pick up again, so I am a buyer of this market as the trend still works in your favor to the upside.
