FTSE 100 Index Price forecast for the week of February 5, 2018, Technical AnalysisThe FTSE 100 fell significantly during the week, breaking the back of a massive hammer at the 7600 level. By closing towards the bottom of the candle and reaching below the 7500 level, this is a very negative sign indeed. However, there is support below.
The FTSE 100 broke down significantly during the week, slicing through the bottom of a hammer from the previous week. By doing that, and breaking below the psychologically important 7500 level, I think we have done a bit of damage to the FTSE 100 going forward. However, if you look at my chart you can see that I have an uptrend line on the weekly time frame that should offer support. Somewhere around 7350 I would anticipate the buyers could come back into the market, perhaps taking advantage of what seems to be an obvious trend line.
If we were to break down below the trendline, then the market will almost certainly try to make it down to the 7000 level, but that’s a longer-term move. I think that more than likely we will see a bit of a stand made by the buyers at the trendline, assuming we even get down there. This market has been bullish longer-term, and even though the last couple of weeks have been negative, I think that we could see an attempt to stop this downward momentum. I think that the market is still very much in an uptrend, but the last couple of weeks have been a bit concerning. It’s going to take longer-term buy-and-hold type of investors to come in and lift the FTSE 100, and if they don’t come in, then we will continue to see a lot of bearish pressure.