FTSE 100 Price Forecast December 28, 2017, Technical Analysis

The FTSE 100 showing strength to break out shows just how bullish the market has been lately, and I believe that the 7575-level underneath is going to now act as a floor in the marketplace. I believe that buying the dips is exactly how most traders are going to approach the FTSE 100, and I also believe that we are going to go looking towards the 7800 level over the short term. Longer-term, by breaking above the 7600 level, it looks as if we could measure for a move towards the 8,000-handle based upon the previous consolidation area. It’s not until we break down below the 7500 level that I would be concerned about the breakout, mainly because of the lack of volume, so therefore if we get moves at this time of year it’s likely that you can only read so much into it.

I believe that the FTSE 100 is benefiting from a historically cheap British pound, and of course people looking at the British economy as being “on sale” in general, as the overreaction of the vote to leave the EU continues to be unwound. I think that it will be noisy, so short-term traders will probably be attracted to this market more than anything else, as little bits and pieces of profit can be had. As far as a buy-and-hold scenario, it might be a bit more difficult because of all the noise that we can expect.

FTSE 100 Video 28.12.17