FTSE 100 Index Price forecast for the week of August 7, 2017, Technical Analysis

The FTSE 100 had a very bullish week, slicing through the 7500 level during the day on Friday. As the US dollar gain strength, the British pound fell, and that of course helps with exports. Looking at the charts, we have been in a longer-term uptrend anyway, and the fact that we have just engulfed the last 2 weeks, tells me that this market is starting to pick up a significant amount of momentum, and should continue to go to the upside. Breaking above the 7500 level is a very strong sign, and I believe should send this market looking for the 7600 level above, and then possibly even higher.

Buying pullbacks

I continue to buy pullbacks in this market, and I also look at a fresh, new high as assigned to start buying. Now that we are clearing the 7500 level, I think that the market will go looking for the 7750 level next, and then eventually the 8000 handle. As long as there is weakness in the British pound, I believe that will be reason enough for this market to continue going higher. Also, I believe that the trend is very strong, so I certainly do not want to fight it. The 7300 level below should continue to act as support, and therefore is my “floor” in the market over the next several weeks. The market should eventually go to the upside, and perhaps even go farther than the thousand handle. It’s not until we break down below the 7300 level that I become concerned about the uptrend. Breaking down below here could find support at 7100 level, but I think the most likely scenario is to the upside so therefore I am a buyer.

FTSE 100 Video 07.8.17