Advertisement
Advertisement

FTSE 100 Price Forecast – British index pulls back on Tuesday

By:
Christopher Lewis
Updated: Jun 13, 2018, 06:37 UTC

The FTSE 100 fell a bit during the day on Tuesday, reaching towards the 7700 level for support. That is the middle of the overall consolidation that I have marked on the chart, and where the 50 hour SMA finds itself. Because of this, I think that the market is trying to make a bit of a stand in the middle of the rectangle, and if it does this could be an interesting signal. Otherwise, it could be business as usual.

FTSE 100 daily chart, June 13, 2018

The FTSE 100 fell rather significantly during the day on Tuesday, reaching towards the 50 SMA on the hourly chart, and of course the 7700 level underneath. That’s an area that has caused a lot of noise in the past, and of course is a large come around, psychologically big figure. The market bouncing from there isn’t much of a surprise, as I think that the market will continue to recognize these large numbers in its importance. This market tends to be very sensitive to everyone hundred points, but recently has been in a bit of a rectangle, with the 7700 level being the “fair value” of the market. So bouncing from there in short, really wasn’t overly surprising.

I believe that if we can break above the 7770 handle, then the market can go higher, as it would show that the market was not able to reach the lows of consolidation again, and then broke out to the upside. I do believe that longer-term we go higher, but in the meantime it’s a matter of being patient enough to either by on the breakout, or by towards the bottom of the consolidation near the 7660 handle underneath. If we break down below the 7740 level, then the market could unwind even further.

FTSE 100 Video 13.06.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement