FTSE 100 Price Forecast August 1, 2017, Technical Analysis

The FTSE 100 initially rally during the day on Monday, slicing above the 7400 level. However, we continue to see resistive action in that area, so I believe that the market is going to be very choppy in the short term. It appears that the buyers are very resilient though, so if we can get a daily close above the 7400 level, I think at that point the FTSE 100 will probably go looking towards the 7450 level above. The market continues to be very choppy, and that’s not a huge surprise, as the GBP/USD pair has been very volatile. That obviously has a bit of an effect on the export market from the United Kingdom, and that of course has an effect on the value of this index.

Sitting on the sidelines

Much like in the German DAX, I believe that we are seeing in a market that’s trying to figure out its next move. Because of this, I think it’s probably safer to be on the sidelines and wait for some type of confirmation. Again, a move above the 7400 level on a daily close would have me interested in buying, but I’m the first to admit that there could be a significant amount of bearish pressure building up in this market, and that we could be reaching towards the 7300 level. This is a perfect example of “when in doubt, stay out.” The market looks likely to chop around and probably make mincemeat out of trading accounts that are foolish enough to put serious trading capital work. However, I will keep you up-to-date as to what I’m doing at FX Empire when the move occurs that has me putting money back to work. Until then, I remain observant of this index.

FTSE 100 Video 01.8.17