FTSE 100 Index Price Forecast October 10, 2017, Technical Analysis

The FTSE 100 gapped slightly lower at the open on Monday, but then found the 7500-level supportive. However, for the first time in a couple of weeks, we have found ourselves below the 24-hour exponential moving average. Because of this, I suspect that the market may pull back a bit further, but it should just into being a short-term move. I think we are likely to see support near the 7450 handle, and of course the 7400 level after that. Longer-term, I still like the FTSE 100, but I think that perhaps we are just trying to build up enough momentum to finally clear this level significantly. The volatility continues to be a bit of an issue in this market, but longer-term I think we continue to see buyers flood into this market as the British pound is starting to struggle again, and that of course helps export coming out of the United Kingdom. Ultimately, I believe that the market is going to go looking towards the 8000 level, but obviously there will be a lot of noise between here and there.

Unless we were to break down below the 7400 level, I have no interest in trying to short this market. I think that the longer-term uptrend should continue, because quite frankly there is an uncanny tenacity to the buying pressure, and I think that most traders will look at this market is offering value every time we see these little dips. Pulling back only allows the market to build up enough momentum to reach towards higher levels, with the 7600 level being the next obvious target. I would add to my position slowly, that way you can build up a large position in won’t have as much to worry about when it comes to the choppiness.

FTSE 100 Video 10.10.17