FxWirePro: FTSE may be aiming for 7000 mark

UK’s benchmark stock index may be aiming pretty higher from here, somewhere around 7000 area, according to the calculations from our model. FTSE is currently trading at 6320 area and yesterday it finally has broken above its recent consolidation range of 6000-6230 area.

However, there are few hurdles which may act as key resistance before the rally. FTSE will have to break above 6500 area, 6820 area to target 7000 mark. So we will prefer to go long at current price and at dips but any break below 6000 will certainly weaken the bulls.

After immense volatility in January and February, market conditions have improved since March and thanks to its global and commodity sector, FTSE has also joined in global rally, despite concerns surrounding Brexit. Moreover, the way Brexit fear has affected Pound, it hasn’t affected equity markets while UK Gilts are top performers.

Concerns surrounding China has abated for now as the government launched fresh stimulus and in the meantime both bank of Japan (BOJ) and European Central Bank (ECB) have launched ambitious stimulus, improving sentiment. Global economic dockets has also been supporting and risk trends have returned in emerging markets.