FTSE 100 Index Price Forecast November 21, 2017, Technical Analysis

The FTSE 100 gapped lower initially during the trading session on Monday, reaching down towards the 7350 handle, but then bouncing enough to turn around and test the 7400 level. This is an area that has been resistive as of late, but if we can break above the 7450 handle, I feel that the market should continue to go much higher, as it would be a turnaround in the fortunes of the FTSE 100. When I look at the longer-term charts, the 7600 level above is massive resistance on the longer-term charts, just as the 7200 level is massive support. That means that the 7400 level is essentially “fair value.” This is why I think we are seeing so much in the way of noise, and of course choppiness. Beyond that, we have the Bank of England members testifying about inflation in front of Parliament today, so they can also have a massive effect in the Forex markets, and on the British pound in general. That of course has a bit of an effect here in the FTSE 100 also.

I think today could be pivotal, so we need to see what happens. Above the 7450 handle, I’m more than willing to start buying and aiming towards the 7600 level above. However, if we were to break down below the 7350 level, then I think that the market goes down to the 7200 level over the next several weeks. Either way, this is a pair that will remain very choppy and difficult to deal with, as there are so many concerns about the United Kingdom leaving the European Union, and with that will mean for trade. Obviously as the European Union is the largest trading partner of the United Kingdom, that will have a massive influence on the profitability of British firms.

FTSE 100 Video 21.11.17