FTSE 100 Price Forecast January 19, 2018, Technical Analysis

The FTSE 100 has been very noisy as of late, but the pullback is a welcome relief for those who may have been waiting for some type of value to enter the market. As you can see on the chart, I have the 38.2% Fibonacci retracement level March, from the most recent move to the upside. I think that the market will eventually go looking to the upside, but I also have the large, round, psychologically important number of 7700 marked on the chart. If we can break above there, the market should be free to go towards the highs again, and treat this is a simple bounce from the 38.2% Fibonacci retracement level and what has been a strong uptrend.

If that doesn’t happen, it’s likely that we will see more support come into play at the 7650 level, which is the 50% Fibonacci retracement level. At this point, I have no interest in shorting the FTSE 100 anytime soon, because quite frankly it has been a very strong move and these pullbacks offer traders who have missed out an opportunity to get involved.

If we broke down below the 7600 level, it’s possible that we can start selling then, but in the meantime, it seems very unlikely to happen as this move to the upside has been so relentless. Remember, markets don’t go in a straight line in either direction, so this pullback appears to be just that – a pullback.

FTSE 100 Video 19.01.18