Tim Young, Day trader at Ayondo, takes a look at FTSE 100, and shares his view on trading the index.
FTSE: Oversold, bounce ahead?
Young looks at the technical charts for the footsie and notes that the 7 day in a row decline is now looking oversold. He believes that the index should have staged a bounce already. As he looks for a bounce higher, some caution is warranted if the index goges down another 100 points, which would result in a lower lows scenario.
Fundamentally, Young prefers to maintain a bullish outlook on the FTSE 100. He notes the key level to be 6350, staying above this will see the index register a sizeable bounce.
China behind the Footsie decline?
Zak Mir says that the Chinese situation might be the reason behind the FTSE 100’s downside move, and with no early resolution in sight for the index, a move towards 6000 might be seen. He further adds that, the longer we stay below the July low, the worse the outlook for the index.