FTSE 100 Index Price Forecast February 20, 2018, Technical Analysis

The FTSE 100 pulled back somewhat during the trading session on Monday, reaching towards the 7250 handle. That’s an area that has been resistive in the past, so it should now be supportive. I think that the market will probably go towards the 7300-level next, an area that has seen a bit of resistance. I think we will break above there given enough time though, perhaps allowing the market to reach towards the 7400 level, and then eventually the 7500 level.

I don’t have any interest in shorting, but I do recognize that if we broke down a bit from here, perhaps below the 7200 level, we will more than likely continue to drift lower and look for support. I believe there should be plenty of support near the 7100 level, but also the 7000-level underneath. I believe the 7000 level is essentially the “floor” in the uptrend, so if we are above that level, I remain bullish. If we were to break down below there, that would be a very negative sign, perhaps unwinding the overall uptrend. I don’t think that’s likely, but I also recognize that it is possible.

There are a lot of concerns with the future the British stock market, because there’s a lot of unanswered questions when it comes to what the future looks like for the United Kingdom and its economy, so I think that there is underlying demand for British stocks, it’s just that there is a lot of concern. However, there has been a massive rally over the last year or so, and I believe that’s the “smart money” working.

FTSE 100 Video 20.02.18