FTSE 100 Index Price Forecast July 27, 2017, Technical Analysis

The FTSE 100 index shot higher during the day on Wednesday, and then pulled back to mute some of the gains. However, I think that we are going to continue to go higher, and reach towards the 7500 level. I believe that the market continues to reach above there as well, as the market is very bullish longer term. I recognize that there is a lot of choppiness ahead of us, but ultimately the market will continue to find opportunities to pick up value in this market as it dips, and eventually reach towards the 8000 level. I believe that the market continues to be volatile, but I also recognize that the British economy has been written off by far too many traders.

The divorce proceedings

There are going to be a lot of questions as to what happens to the British economy after the United Kingdom leaves the European Union. I believe that the overall attitude of this market is that traders are starting to recognize that although it will have some bad consequences, over the longer term the British will have more control over their own economy, and of course there are plenty of trading partners out there waiting to deal with the United Kingdom. A free-trade agreement with the United States would replace any free-trade agreement with the European Union alone based upon numbers, and most certainly there will be some type of free-trade agreement with the EU anyway. Even if there isn’t, there are the WTO fallback trade agreements that of course would be enforced. In the end, the United Kingdom will do much better than most people in the currency markets are suggesting, but that lower British pound helps this market as well. I remain optimistic, but recognize that there will be a lot of noise.

FTSE 100 Video 27.7.17