FTSE 100 Index Price forecast for the week of July 31, 2017, Technical Analysis

The FTSE 100 initially tried to rally during the week but fell rather significantly. In fact, we are testing an uptrend line, as we reach towards the 7300 level. I think that part of this is due to currency headwinds, as the GBP/USD pair has seen a bit of strength as of late. Ultimately, I also believe that there is a significant amount of support at the 7300 level, so I believe in waiting until we break down below there before initiating any type of short position. Quite frankly, we are still in an uptrend, and that has not changed. I think that the market will continue to be very choppy, and susceptible to headline risks.

Short-term trouble, longer-term buying dips

I believe that in the short term are going to see some trouble, but over the longer term I still believe in buying dips. I think that the market will go looking for the 7500 level above. It will take a while to get there, and most certainly this latest to roll over is a bit concerning as the market has made a lower high. However, we have not made a lower low yet, so that’s not completely confirmed as a rollover. Given enough time, I think that the market will probably find a reason to go higher but we have been rather bullish over the last several months, so a bit of a pullback isn’t necessarily the worst thing.

FTSE 100 Video 31.7.17