The FTSE 100 is treading water ahead of the Greek debt negotiations

Last time I wrote to you I mentioned that in my view the FTSE 100 was headed lower and I called for the 6,800 points’ barrier to be the pivot point of interest. However even though the FTSE briefly did break below this important level the outcome was not what I expected. Over the past few days the FTSE found support around the 6,800 points area and bounced back higher making near its previous 6,900 points highs.

I think that this inconsistency on the London benchmark index has to be attributed to the unstable and fragile fundamental environment mainly in Europe. The main topic of discussion is the renegotiation talks between Greece and the Euro-zone on how to refinance a new debt deal or whether to just scrap it and let Greece exit the union.

Now the UK might not be a part of the Euro-zone but definitely developments concerning our biggest trade partner take their toll on the domestic market as well. In my view, the most likely scenario is that either side (or both) will have to accept a worse deal than they initially had in mind and the situation will be successfully resolved one way or another.

In the mean time I am looking to play the ranges in the FTSE 100 until this issue gets resolved, the 6,900 points area seems like the top barrier for the index at this time and significant support is concentrated ahead of the 6,800 points floor so I will try to trade near these extremes. I believe that until we come to a final solution with the Greek issue the FTSE will not decide on its direction so try to find reversal opportunities near these levels should be my game plan.

Please note that during the coming days we’ll probably see increased volatility on the FTSE as there’s a host of important economic reports scheduled for release: inflation, employment and retail sales data. These guarantee some price action on the FTSE so be quick on your trades and don’t get stuck between the swings.

I would like once again to invite you all to my upcoming Forex MasterClass which I believe will be the educational event of the year. I have included a 10% discount for anyone that wants to join within the next couple of days so click the banner below to find out more – don’t worry the 10% discount code is already included.alpesh_event

alpesh

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