We are certainly living in uncertain times. With the increasing worries over the Europe’s future relationship with power supplier Russia it seems once again investors are looking for a safe place to put their wealth. The UK seems, or more specifically London seems to be the considered a relatively safe bet. With the banks recapitalised and the majority of FTSE 100 companies holding health balance sheets it seems rather than ‘rushing’ back in to the traditional safe havens like gold, the indices in general are where people see value.
I maintain that the DAX has tipped the markets hat here having reached 10,000. I don’t feel the outlook for the EU or Germany is particularly strong in the mid term so I can see the FTSE and the S&P easily reaching the psychological highs of 7000 and 2000 respectively.
For the FTSE I predicted a daily dip buying strategy that has worked on the lows very well over the last few months. 6699.80 has proven to be a key levels of strength in the FTSE. The next target is 6819.30 and once we test 6867.80 then 7000 will surely be tested and broken. If you see any daily candle with a large lower wick, the chances are that the next open is positive. It is a reality easy technical
Once we hit new highs there will of course be a battle to see how far the FTSE can rise. I don’t foresee a correction until next year. I when I refer to a correction I mean where the FTSE and correlating indices lose 7-9% of their value in a relatively short space of time.
You will need to learn how to overcome impulsive emotions
which are among the reasons why many traders lose their
money in this market. Find your own path to financial abundance and security for your retirement as you blow your worries away.
If you are trading on an hourly basis, you want
to look at the one and three minute candlestick charts.