FTSE 100 forecast for the week of December 25, 2017, Technical Analysis

The FTSE 100 rallied a bit during the week, breaking above the vital 7600 level at one point. We have pulled back a little bit from there as traders took profits before holiday season it says, but at the end of the day I think that the markets will get involved to the upside, and a break above the top of the candle for the week is a reason to start buying. Based upon the recent consolidation area, I believe that the market will go to the 7800 level, and then eventually the 8000-level based upon measurements.

I believe at this point that every time the market pulls back, it’s a buying opportunity as we see so much in the way of strength and of course stock markets around the world have been no one well. I don’t see an opportunity to sell this market until we were to break down below the 7000 handle, something that doesn’t look very likely to happen. 8000 is a psychologically important number, so it makes sense that it would be a target for longer-term traders. Expect volatility, but I think that adding on the dips should continue to be the best way to take advantage of the longer-term trend, as the buyers are clearly in control. The markets continue to be driven by headlines, coming out of both Brussels and London, but at the end of the day I think the FTSE 100 will continue to be looked at as value, and of course cheap as the British pound itself has been cheap.

FTSE 100 Video 25.12.17