FTSE 100 Index Price forecast for the week of October 2, 2017, Technical Analysis

The FTSE 100 had a slightly bullish week, reaching towards the 7375 handle. We are currently in the middle of consolidation though, so I think we’re probably going to continue to go higher. I suspect that the markets going to go looking towards the 7500 level, but I’m not expecting much more than that. Longer-term, I would anticipate that the market will break out someday but I don’t think we have the momentum quite yet. Short-term pullback should be buying opportunities, and I think that people are simply building up a position. Shorter-term traders are probably enjoying this type of action, but the longer-term traders simply building up to benefit from the next leg higher.

If we were to break down below the 7100 level, then I would become concerned. Until then, those dips have to be thought of as value in a market that seems to be reasonably resilient. The Bank of England is likely to raise interest rates, but I don’t think that that’s going to wipe out much value in this market. It’s a known quantity now, and it seems as if we have almost completely recovered from that initial shock. Because of this, I believe that we will eventually clear the 7600 level and go looking towards 8000. It may take several weeks to get there though, so patience will be needed in therefore you can add to your position slowly to preserve trading capital, and of course build up a larger position to take more profit out of the market when your time comes. I suspect that if we break down below 7000, that would be an into the uptrend and be very negative indeed. At that point, you could start thinking about shorting, but I don’t see that happening anytime soon.

FTSE 100 Video 02.10.17