FTSE 100 Index Price Forecast October 4, 2017, Technical Analysis

The FTSE 100 rallied a bit during the day on Tuesday, as we continue to see the market grind to the upside. I think the market eventually goes to the 7500 level, with the 7400-level underneath should be support. I think that the GBP/USD pair rolling over in general continues to lift this market as it makes exports out of the United Kingdom cheaper. That of course lifts profits as companies in the United Kingdom make more sales. The 7500 level above will be resistance though, so I think it’s difficult to imagine that we are going to go straight out. That is a large, round, psychologically significant number, so I think that the area will take a couple of times to get involved.

Pullback should continue to find support at 7400 level, and as you can see on the hourly chart, the 24-hour exponential moving average seems to be offering a significant support in the uptrend. I think that dips are offers for the market participants to pick up value in a market that certainly has been in a longer-term uptrend. A break above the 7500 level is very bullish, as it should give the market enough impetus to continue the longer-term uptrend, and jump into the next leg higher. Ultimately, I believe that we go looking for the 8000 level, but it is going to take several months to get there. The market breaking below the 7300 level would be disastrous, as it would put serious strain on the overall uptrend. I don’t think it’s going to happen though, so I prefer buying these dips as they appear in a market that has been very reliable over the longer term. Volatility will probably be a common theme, but in the end, it seems as if it’s a one-way trade.

FTSE 100 Video 04.10.17