FTSE 100 Index Price Forecast May 30, 2017, Technical Analysis

The FTSE 100 had a positive session on Monday, as we continue to see a bullish run to the upside. It looks as if the 7550 level is starting to offer a little bit of resistance, but I do believe that eventually we will break above that level. The moving averages all look very stable underneath that I follow, and the 7500-level underneath is massively important as it should continue to be very supportive. A break above the 7550 handle should send this market looking towards the 8000 handle to the upside. As we continue to pull back, I believe that is a market that should continue to find plenty of bullish pressure underneath, and as a result this is a “buy on the dips” type of scenario as far as I can see.

FTSE 100 benefits from exports

The British pound has historically been very quiet and soft over the last several months, and that of course helps exports. The FTSE 100 is highly dependent on exports in general, and because of this, a cheap British pound tends to help this market. It now looks as if the market will continue a very general grind higher, as the market continues to offer value going forward. We could get pullbacks occasionally, because of the British pound trying to rally, but longer-term I believe that the FTSE 100 will continue to perform quite well as stock markets in general have. We are still looking at improving economic conditions around the world, and that does tend to help stock markets overall. Ultimately, I believe that we will not only reach the thousand handle, but go higher than that given enough time. It is not until we break down below the 7500 level that I would even remotely consider selling.

FTSE 100 Video 30.5.17