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FTSE 100 Price Forecast February 7, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Feb 7, 2018, 04:51 UTC

The FTSE 100 was very noisy during the trading session on Tuesday, reaching as high as 7250, but turned around to show signs of exhaustion. If we can break above the 7250 level, the market should then continue to go higher. We have bounce from the 7000 level, which is a good sign.

FTSE 100 daily chart, February 07, 2018

FTSE 100 shaders were very busy during the trading session on Tuesday, as we reached towards the 7250 level but then pulled back significantly. The 7000 level during the previous session of course is massively supportive, and I think at that level a lot of value hunters had come back into the marketplace. I think that if we can break above the 7250 level, the market should then go towards the 7350 handle, and then make a move towards the 7500 level. This is a market that has been oversold for some time, and value hunting makes quite a bit of sense.

The risk off move as of late has been worldwide, but quite frankly most stock markets need to see value enter the situation, and at that point longer-term traders start to pick up positions. I believe that the volatility will continue, but if we can stay above the 7000 level, it’s only a matter of time before we continue the longer-term uptrend. A breakdown below the 7000 handle could be very negative, as a fresh, new low could bring in even more selling. However, longer-term we are in an uptrend, even though it’s been very ugly over the last several sessions. Economic indicators around the world are reasonably strong, so I think that we should continue to see “risk on” trading going forward, and therefore I think that if you are patient enough you should find reason enough to go long.

FTSE 100 Video 07.02.18

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.

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