FTSE 100 Index Price Forecast November 22, 2017, Technical Analysis

The British index rallied during the day on Tuesday, after initially forming a hammer on the hourly chart. By breaking above the 7400 level again, and proving it to be supportive, it now looks very bullish going forward. If we break above the 7450 handle, then I think that the buyers will come in and push this market back towards the 7600 level above. What would also be interesting is that the market will not have fallen towards the bottom of the larger consolidation area, which would be a move down to the 7200 level. Overall, this is a market that continues to see a lot of noise, but I believe in the overall value that we are starting to see, and I also believe that if we continue higher from here, this signifies the eventual break out to the upside and more of a “buy-and-hold” situation.

A break above the 7600 handle sends this market looking for the 8000 level longer term based upon the measured move of the consolidation area that we are involved in. Alternately, if we were to break down below the 7350 handle, then we simply revisit the 7200-level underneath, and continue the longer-term consolidated action. The end of the year probably dictates some buying to fluff up returns by hedge fund managers, but that in and of itself is not a reason to start buying. Overall, I think that every time we dip, buyers will probably be looking to take advantage of that value opportunity. If we fall from here, I think that a quick selling opportunity presents itself, but I would be out of that short trade somewhere near 7250 just to be on the safe side. I think volatility is likely, but I also believe that the market favors the upside.

FTSE 100 Video 22.11.17