FTSE 100 Price Forecast January 29, 2018, Technical Analysis

The FTSE 100 has found a bit of support just above the 7600 level, an area that has been resistance in the past, and based upon longer-term charts should continue to be an area of interest. The fact that we have bounced a bit suggests that we are going to continue to go to the upside, perhaps reaching towards the 7750 level, and then eventually higher than that. Ultimately, this is a market that should continue to favor upward pressure, and I believe that longer-term it should send this market looking towards the 7800 level, followed by my even longer-term target of 8000.

Pullbacks continue to find plenty of buyers, and I think that we will eventually find a bit of a base being formed here, and that we will continue to see attention being paid to this market. I think that the market eventually finds reasons to go higher, and even with the GBP/USD pair rallying, there are plenty of fundamental reason to think that the British economy should continue to do quite well, at least not as poorly as once thought due to the break away from the European Union. Traders had essentially priced in Armageddon to the currency markets, and that gave a bit of a boost for the stock market, and now I think we’re starting to focus on more fundamental issues. Buying on the dips continues to work, and it’s not until we break down below the 7200 level that I think this market would be in trouble. Because of this, I expect to see buyers return. I’d be a buyer above the 7675 handle.

FTSE 100 Video 29.01.18