FTSE 100 Price Forecast January 24, 2018, Technical Analysis

The FTSE 100 has gone back and forth during the day on Tuesday, showing signs of volatility yet again. Volume is a bad though, so I think what we are looking at is the market trying to build up enough momentum to continue going higher, perhaps offering a base from which to build higher pricing. The 7800 level would of course be the next target based upon the large, round, psychologically significant number theory, and of course structural resistance in the past. I believe that the FTSE 100 is still thought of as cheap, especially considering that the British pound has been so cheap, at least in historical terms.

Breakdown, I expect to see a lot of support near the 7680 handle, and then again at the 7650 level. Longer-term, the absolute “floor” in the market is closer to the 7500 level, but it’s very unlikely that we not only reach there, let alone break through it. Longer-term, I believe that the market is trying to go to the 80,000 handle, so I look at short-term pullbacks as buying opportunities in what should be a larger move, and hopefully a larger position. I like the idea of adding slowly, recognizing that we are in more of a grind higher than some type of massive breakout just waiting to happen. I believe that the volatility will remain an issue, so it’s likely that you can build your position very slowly. There’s no need to jump in with both feet, this is a longer-term grind to the upside.

FTSE 100 Video 24.01.18