Will the FTSE pass 5600 convincingly?

With the FTSE 100 convincingly passing the 5600 mark to 5630 earlier in the day I thought the rise was set to continue. It would seem I was wrong to think this and as I currently write this it’s hovering around the 5600 mark. With 5600 offering some resistance a few days ago has it done enough to make this resistance level a thing of the past I fear not. But then again maybe it has. Until the FTSE 100 closes convincingly above 5600 it will be a resistance level in my mind.

I think over the next few days it probably will pass this level, opening the way to the 5800 level we seen earlier in the year. Will it pass this? Well that’s any ones guess. If the resistance level of 5600 does get broken it will become a support level for me.

You probably wondering why I’m harping on about all this when I don’t even trade the FTSE. Well it’s not strictly true.  I have a personal pension which I and invest in certain funds created by my bank. One of which is the FTSE All Share index tracker. Although the FTSE 100 is not the same as the FTSE All share they paint a similar picture.

Also the FTSE 100 is a good indicator of general market sentiment. With that market sentiment being buying at the moment it a good indicator that my open positions should rise along with it. That said this is the stock market we are talking about here and as well all know absolutely anything can happen.

Thanks to Iain and Tony for there comments on yesterdays post. I have decided to wait in regard to pyramiding my F&C position. Like Tony said  “I think you might be too keen to pyramid too soon”.  To be honest I don’t really have anything in my strategy regarding when to pyramid, but I should. I think I will spend some time thinking this through and then I will have my rules laid out for when and when not to pyramid. Thanks for the advice guys. This is why I love keeping this blog. Before I would’ve only had myself to ask for help but now I have the opinion of other more experienced traders. So thanks again for the comments. They are invaluable as always.

Anyway that’s all from me for today.