FTSE 100 Price Forecast January 22, 2018, Technical Analysis

The FTSE 100 of course did rally a bit during the day on Friday, and as we have been in a strong uptrend over the last several weeks, it makes sense that this pullback would attract buying pressure. After all, we have pulled back to the 38.2% Fibonacci retracement level, based upon that move and I also think that this pullback has offered value that a lot of people were waiting on. Because of this, and the historically cheap British pound, I believe that the FTSE 100 will continue to go higher, so I like buying in this general vicinity. However, if we break down below the 7680 level, then I think the market will probably go down to the 7600 level where it should find even more support.

Once we clear the 7750 level, I feel that gives the “all clear” to the buyers, and that we should then go to the 7800 level, perhaps even break above there. Longer-term, I believe that the market is going to go looking towards the 8,000 handle, but obviously that is going to take some time to get to. It’s going to take a lot of volume, a lot of fighting, and a lot of volatility. Nonetheless, I do believe that’s where we go so I like buying on the dips and adding as the market works out in my favor. Shorting is it a thought into we break down below the 7400 level. Unless the trade agreement between the British and Europeans is an absolute train wreck, this market should continue to go higher.

FTSE 100 Video 22.01.18