FTSE 100 Index Price Forecast August 7, 2017, Technical Analysis

The FTSE 100 exploded to the upside on Friday, slicing through the 7500 level. It’s a good sign that we broke above that level, now I think that the market could continue to go much higher. Pullbacks should continue to be buying opportunities as the FTSE shows overall strength. This was started on Thursday, and now that we have continued this impulsive move, I believe that every time the market pulls back it’s going to be a buying opportunity. This is predicated on the idea that the US dollar strengthening should make the British pound softer, and that should help with exports.

Strengthening market

I think given enough time, the market should continue to go to the 7600 level, but I think it’s going to be very volatile between here and there. I think that there is significant support at the 7400 level, so buying on the dips continues to be a good strategy as far as I can see. Position sizes could be smaller than usual, but adding on pullbacks gives you the ability to build up a larger position that you can take advantage of. That gives you the opportunity to profit handsomely from this market, as we do continue to keep going higher. This being the case, I think that active traders will continue to be very bullish of this market. Selling isn’t a thought until we break down below the 7400 level, which doesn’t seem very likely to happen anytime soon. The market looks volatile, but certainly looks strong.

FTSE 100 Video 07.8.17