FTSE 100 Index Price Forecast August 3, 2017, Technical Analysis

The FTSE 100 initially fell during the day on Wednesday, testing the 7400 level. However, we have found that area to be supportive, and it looks as if we may bounce from here. Either way, what I find most important is that we fill the gap from a couple of days ago, and that should continue to support the British index. As we break above the top of the range for the day, I believe that the buyers will jump in and continue to push this market towards the 7500 level. That area will probably be rather resistive. Pullbacks of this point should find support at the 7375 handle, and the 7350 level as well.

Buying dips

I continue to buy short-term dips, and this dip during the day on Wednesday has been a perfect example. As there is a lot of noise involving the British pound and of course the divorce proceedings from the European Union, we will probably continue to see extreme amounts of volatility. Longer-term though, looks as if we are simply trying to grind sideways overall, and therefore I prefer buying the dips as it gives us an opportunity to make a value play. The 7300-level underneath should be massively supportive, and it’s not until we break down below there that I would be comfortable shorting this market. Ultimately, that should send this market looking towards the 7200 level. I don’t think that’s the base case scenario here though, so having said that I think that it’s only a matter of time before we go long yet again. If we can break above the 7500 level, the market should go much higher as it’ll give us an opportunity to be more of a “buy-and-hold” market, offering a longer-term trading opportunity.

FTSE 100 Video 03.8.17