FTSE 100 Price Forecast December 5, 2017, Technical Analysis

The FTSE 100 initially gapped higher, but then pulled back to fill that gap, suggesting that perhaps we will try to reach towards the 7400 level above. That’s an area that has been important recently, as it is “fair value”, as it is the middle of the longer-term consolidation area, with the 7200 level being the supportive area, and the 7600 level being massive resistance. The market looks as if it is trying to roll over though, and now I think we will retest the 7400 level above, and if we see any signs of exhaustion in that area, I’m a seller as I think we will go down to the 7200-level underneath. That area should hold though, as it is reasonably reliable for support.

Ultimately, I think that the market breaking above the 7450 level would send this market looking towards the 6500 level above, the top of the consolidation. I think there is a lot of noise in this pair right now, and with the British pound strengthening over the last 24 hours, that could be part of what has been driving the market lower. Nonetheless, I don’t expect any type of massive move in the short term, especially considering that the holidays are coming, and it’s likely that the volume will dry up a bit. Ultimately, I think that the market should continue in the 400-point range that we have been in, as there is no catalyst to drive this market between now and New Year’s Day from what I see. However, there’s always the occasional surprise, so keep an eye on the larger rectangle.

FTSE 100 Video 05.12.17