FTSE 100 Price Forecast February 27, 2018, Technical Analysis
The FTSE 100 rallied a bit during the day on Monday, breaking above the 7300 level initially. However, we have pulled back a little bit to find support, and I believe that the 7250-level underneath is essentially a “support level” coming into the market and lifting the overall attempt a breakout above the resistance. I believe that if we can clear the 7325 level, the market will probably run towards the 7500 level, which is a long-term region.
Ultimately, I think that there is even more support below at the 7200 level, an area that should be massive support based upon the previous several sessions, and I think that the market continues to find plenty of reasons to go higher. I like buying dips, but I would add slowly as there is so much in the way of noise and of course potential headlines coming out of the negotiations between London and Brussels that could move this market around. The British pound has been softening during the trading session, so that of course has helped the idea of British exports being cheap and lifting the FTSE 100 overall. If we can break above the 7500 level above, the market could continue to go much higher, reaching towards the 8000 level which is my longer-term target. I think bottom of the overall uptrend is to be found at the 7000 handle below. If we were to break down below there, it would be an extraordinarily negative sign.