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

The FTSE 100 went sideways during the session after initially gapping lower on Thursday, as the 7300 level continues to offer a bit of resistance. There is a gap just below the 7300 level that needs to be broken to the upside so that the market can continue the rally. Currently, looks like we are rolling over a little bit so I think that we could reach down towards the 7200 level. Given enough time, I think if we break down below there we will probably find plenty of support near the 7100 level below that looks very bullish. If we were to break above the 7300 level however, that would be a bullish sign and should send this market to the upside. Ultimately, I think that you will see a lot of volatility, and with the strength of the British pound coming into play, that could work against the value of the FTSE 100 overall. After all, the Bank of England has suggested that they could be raising rates soon, which is good for the currency but makes that expensive currency a headwind when it comes to exports.

I think that you will continue to see choppiness, and overall, I think that eventually the FTSE 100 will rally but we may need to pull back as the market had been so hot for so long. Nonetheless, I think that watching the GBP/USD pair for negative correlation is probably going to be the best way to play the market. Ultimately, small positions are probably best in a volatile market like this as you can get shaken out of a trade rather quickly. With that, I remain cautious when it comes to trading this market as the choppiness could cause significant trouble.

FTSE 100 Video 22.9.17