FTSE 100 Index forecast for the week of October 9, 2017, Technical Analysis

The FTSE 100 exploded to the upside during the sessions that made up the previous week, breaking above the 7500 level. That’s a very bullish sign, and I think that the market is going to continue to find buyers on dips. I like buying and holding this market, because quite frankly the momentum has been extraordinarily relentless. It’s not until we break down below the 7100 level that I would be worried about the longer-term uptrend, but corrections could happen between now and an explosive moved to the upside.

The British pound has been selling off rather drastically over the last couple of weeks, and that of course increases profits for British exporters. It makes those British goods cheap, and that is exactly what the stock market likes to see. Ultimately, I think we go towards the 7750 level, and then eventually the 7800 level after that. Longer-term, I’m expecting a move to the 8000 level over the next several months. I believe that the market momentum should only pick up from here, and the recent grinding is probably more or less going to be a bit of momentum building, as the market catches his breath after the explosive move above the 7100 level. Overall, I think we are consolidating in the short term, but I think people were building up positions and what looks like an accumulation phase. If we did breakdown below the 7100 level, that would be extraordinarily negative, but I just don’t see that happening anytime soon. With this, patients should reap rewards for the bullish traders out there. Be aware that headlines will come along from the negotiations between London and Brussels occasionally that could cause issues, but the trend is most certainly intact.

FTSE 100 Video 09.10.17