In today’s Trading Strategy, Tim Young, Daytrader at Ayondo, offers the outlook for the FTSE 100, noting that momentum signals remain in favour of further upside on the index.
FTSE 100: Hourly Chart
Young maintains his bullish view on the FTSE 100, and suggests maintaining a stop loss at 6350, looking for a 100 point gain.
On the risk-reward ratio, Young says how this is more of a game of psychology, as the level would vary from person to person.
FTSE 100: Weekly chart
Young takes a look at the weekly charts for direction, and says that the index has been around similar levels for the past few weeks, having failed to break above the 6400 area, but at the same time has not broken to the downside. He adds that the momentum is not yet stretched, indicating of a possible upside in the equity index.