FTSE 100 Index Forecast October 30, 2017, Technical Analysis

The FTSE 100 had a volatile session on Friday, as we broke higher, clearing the 7500 level easily. However, we turned around to find support in that area again, as we settled down to have a reasonably unremarkable finish to the day. I think that the 7500 level will continue to be an area of contention in this market, and therefore I think that the next couple of days could be interesting. I recognize that there is a lot of noise above, extending to the 7550 level, and this is a market that would break out to the upside and towards the 7600 level above there. Ultimately, the market would then continue to gain, probably in congruence with a falling British pound as it helps exports out of the United Kingdom.

Alternately, if we break down below the 7480 handle, the market probably drops back down to the 7425 region again. I think the next couple of sessions will be very important, so pay attention to where the impulsivity comes, and then simply follow it as it could be a nice opportunity. The market should then find a way to reach one of those levels, so be careful between now and then, and add to your position once it starts to work in your favor. I think that the 7500 level is essentially “fair value” in the market, and that should continue to push traders in both directions. Quite frankly, until we find another “area of fair value” the market will probably continue to be attracted to that level if we get a bit too far in one direction or the other. By waiting for the market to break either out to the upside or down below support, then you can become a bit more aggressive.

FTSE 100 Video 30.10.17