The FTSE 100 had a lot of volatility attached to it on Monday, as we have seen a lot of indices around the world rise on calming Middle East tensions, but how long will they last?
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The FTSE 100 has been somewhat positive right off the bat on Monday as we gapped higher in reaction to the settling down of tensions in the Middle East. That being said, it's probably worth noting that the market has since bounced back and forth, showing signs of exhaustion. The question at this point in time is whether or not the market can continue to see this momentum. After all, the market is threatening a swing high sitting just below the 11,000 level, and it's an area that we had seen a lot of selling in the end of the month of February.
Short-term pullbacks at this point in time see a lot of action underneath that extends down to the 10,600 level. The 10,600 level is an area that a lot of people will be watching very closely as it is a significant area of both support and resistance recently. The 50-day EMA now sits at the 10,500 level, and with that being said, it's likely that we continue to see buyers coming out to take advantage of the dips as they would be looking for a certain amount of value and momentum.
Buying Opportunities in the Upward Channel
We have been rising for some time and in a bit of a channel, if you will. If we can continue to go higher from here, that's great, but if we pull back, I think that also offers a bit of a buying opportunity for those who are a little more longer-term based and those who are comfortable riding through some volatility. I think that's probably true with many of the indices that I follow. As a result, that is probably the easiest trade to take, although it might be noisy here and there.