FTSE 100 Index Price Forecast October 5, 2017, Technical Analysis

The FTSE 100 had a very sideways session on Wednesday, as we continue to hover just above the 7450 level. I think that we are going to go looking towards the 7500 level given enough time, but we may need to build up momentum to do so. Once we get to that area, I suspect that there is going to be a certain amount of resistance, but over the longer term I anticipate that the buyers are going to eventually get there way. I think that the market should continue to look at it as a “buy on the dips” opportunity, and therefore I don’t have any interest in shorting. I believe that the short-term floor in the market is 7400, so it’s not until we break down below there that I would remotely consider selling. If we break down below there though, I think that there will be plenty of support at 7300.

Once we break above the 7500 level, I believe that longer-term we will be looking towards the 8000 level, but that will take several months to get to I believe. Because of this, it’s likely to be a very noisy market in the future as well, but I believe in buying, and not selling. I will be especially true if the 80,000 level is now targeted, as you would be able to build up a larger position on dips, as they will offer value there as well. Longer-term, I believe that the FTSE 100 will continue to see money flowing into it as the UK economy seems to be doing better than a lot of people had anticipated after the boat to leave the European Union. The FTSE 100 seems to be following other stock markets around the world, that of course have been bullish.

FTSE 100 Video 05.10.17