In today’s Trading Strategy, we offer the technical outlook for FTSE 100, with Tim Young, Day Trader at Ayondo.
FTSE 100: Weekly chart
Young mentions how he normally trades using the short-term charts but uses the weekly chart for identifying the direction. He adds that momentum-wise, the equity index is set to see further upside gains.
On an upside target, Young suggests running with the momentum indicators, looking at the stochastics to get over above the 80 level before a pullback is seen.
FTSE 100: Daily chart
The footsie climbed back from its overbought levels but is still looking to go back to those levels, according to Young.
He remains a FTSE bull and says that with central banks printing money, it would be a dangerous game to short the indices.