FTSE 100 Price Forecast December 6, 2017, Technical Analysis

At this point, I believe that the FTSE 100 is struggling due to the negotiations between the United Kingdom and the European Union stalling. However, they will eventually come to some type of agreement, because quite frankly they need to and eventually must. Because of this, I believe that the markets are trying to figure out whether the British will have the ability to export easily to the continent. In the end, they will so that should be a boon for the FTSE 100. In the meantime, the volatility should continue to be an issue, and I believe that the 7400 level above will offer resistance. It looks as if we are trying to form either a bearish flag, or perhaps an uptrend in channel. It’s a little bit early to tell which direction, and I believe that this will be news driven. Therefore, positions in the FTSE 100 should be rather small currently. However, we will eventually get some type of clarity, and then it should be easy to follow.

A breakdown below the 7300 level would signal that it is in fact a bearish flag, and I think at that point we would go looking towards the 7200 level which is the bottom of the overall consolidation area that the market has been in for some time. Alternately, if we were to break above the 7400 level, then I think eventually we go looking towards the 7600 level, which is the top of that same consolidation area. This market should continue to be choppy, and therefore the position sizing becomes that much more important.

FTSE 100 Video 06.12.17