FTSE 100 Price Forecast August 2, 2017, Technical Analysis

The FTSE 100 gapped higher at the open on Tuesday, skipping the 7400 level. We did pull back, and we found plenty of buying underneath. The market continues to grind its way to the upside, and I think it is likely to continue doing so. The 7450 handle above should be resistive, but I think given enough time we should break above there and then go looking towards the 7500 level. I think that the 7400-level underneath should continue to be supportive, especially considering that we have a gap down there now. I’m a buyer the FTSE 100, and believe that there is quite a bit of value to be had in this market. With this in mind, I buy dips, and believe that eventually we will reach towards the 7500 level.

Buying dips

Buying dips is the best way to go, as it gives you an opportunity to add slowly to your position and build up a much larger trade. I think if we can break above the 7500 level, the market can go much higher, but it may take several tends to get above there. After all, there are a lot of concerns when it comes to the United Kingdom leaving the European Union, so with this being the case it’s likely that the markets will remain volatile. However, I still believe that the FTSE 100 should continue to go much higher and therefore I am cautiously optimistic when it comes to the British index.

FTSE 100 Video 02.8.17