FTSE 100 Index Price Forecast May 18, 2017, Technical Analysis

The FTSE 100 Index initially tried to rally during the day on Wednesday, but found the 7540 level to be far too resistive again, and more importantly, ended up breaking below the bottom of an uptrend line that has been relatively reliable on the hourly chart. As we broke down below the 7500 level, it showed negativity, and I believe that the market could go to the 7450 level below. I think that we will have buyers underneath given enough time, but a supportive candle is needed to be printed for me to start going long again. I believe that the 7400 level underneath will be massively supportive as well, and of course we have the moving averages that have lifted the market for some time. Because of this, I feel that any selling opportunity will be short-term at this point, and therefore I’m not looking for anything major.

US political noise

The main reason for the selloff would’ve been the US political noise coming out across the wires, as President Trump continues to have several questions asked about his presidency and dealings with Russia. Longer-term, this is probably not a major issue, and certainly has nothing to do with Great Britain, so I believe that given enough time we should see buyers jumping back into this market and it should offer value based upon what we are seeing currently. I believe that letting the market calm down before buying longer-term is probably the best way to approach the FTSE 100 currently as we may need to catch her breath. There has been nothing that has fundamentally changed with this market that warrants any type of selling from what I can see. Because of this, I believe that once this noise gets out of the headlines, we continue to go much higher.

FTSE 100 Video 18.5.17