FTSE 100 Index Price Forecast so I 4, 2017, Technical Analysis

The FTSE 100 broke higher during the day on Monday, reaching towards the 7380 handle. This is an area that shows significant resistance, extending to the 7400 level. The level should continue to bring sellers, reaching down towards the 7300 level. A break above there would be a very bullish sign, but I think right now we are going to see this market go back and forth, perhaps consolidating in the short term as we try to figure out our next move. A breakdown below the 7300 level should send this market down to the 7200-level next. Pay attention to the British pound, as the strengthening British pound has worked against the FTSE 100 as there is so much in the way of exports when it comes to this index, and of course the more expensive exports are, the less buyers we will have outside of the United Kingdom.

Consolidation

I believe that we continue to consolidate, become as the markets aren’t sure what to do with the British pound. After all, the market has a lot to think about when it comes to the divorce from the European Union, and of course there will be a lot of headlines crossing the wires that can move not only the British pound, but the FTSE 100 itself. Because of this, I think that you will have to be very careful, but it does appear that in general the selling pressure will return occasionally, and it will take very little to scare people into shorting this market. If we did break above the 7450 handle, I think the market will suddenly become very bullish. Either way, the volatility will be extreme, and you should keep that in mind as you place positions.

FTSE 100 Video 04.7.17