FTSE 100 Index Price forecast for the week of July 10, 2017, Technical Analysis

The FTSE 100 bounced around during the week, using the 7300 level as support. The fact that we found support in that area suggests that the market is still ready to go higher. If we can break above the 7400 level, the market should then go towards the 7500 level. A break above there census looking towards the highs again, and then perhaps seeing a longer-term move towards the 8000 level. This is a market that is starting to show quite a bit of volatility after an impulsive move higher, and I think that’s normal considering that you can go in one direction forever. The market looking likely to show signs of support underneath is an idea that most traders will probably back upon. The GBP/USD pair has a lot of influence and that’s market as well, because the FTSE 100 is full of exporting companies.

GBP/USD

By paying attention to the British pound, you can see what the export outlook is for the FTSE 100, as the markets will continue to see the correlation hold true. Ultimately, if we were to break down below the 7000 level, the market would fall apart and the trend to the upside would be over. Given enough time, that could be catastrophic. Alternately, the market still looks healthy, because we have recently made a “higher high”, and “higher lows.” Because of this, the market still looks like it’s in an uptrend, so I think it’s probably easier to buy this market than anything else. If we get the buy signal, I will be much quicker to act on that than I would some type of weakness and start selling because of this. Volatility continues to be the way forward.

FTSE 100 Video 10.7.17