FTSE 100 Price Forecast August 11, 2017, Technical Analysis

The FTSE 100 gapped lower at the open on Thursday, slicing through the 7400 level. However, there is quite a bit of support just below, and later in the day we are starting to show signs of life again. I think that the market tends to look at these gaps as targets, and I think that we will turn around and go try to fill that gap above. I think that there is a significant amount of support at the 7350-handle underneath, and therefore I don’t have any interest in shorting this market until we get below there. I think that the bounce should continue to offer buying opportunities for short-term traders only, and is not until we break above the 7500 level that I would be comfortable buying for a longer-term though. In that short-term though, it certainly looks as if we could have a “smash and grab” opportunity.

The alternate scenario

If we do breakdown below the 7350 handle, the market will probably come undone. If that’s the case, I think we will probably go to the 7300 level, and then the 7200 level. There are going to be a bit of headwinds when it comes to the British pound, especially if it starts to appreciate, but if it rolls over that might be reason enough for this to go much higher.

FTSE 100 Video 11.8.17