FTSE 100 Price Forecast January 3, 2018, Technical Analysis

The FTSE 100 has pulled back rather significantly during the trading session on Tuesday, reaching towards the 7635 handle. This is a significant support barrier that extends down to the 7600 level. I believe that the 7600-level underneath will continue to be massive support, and I think that it is only a matter of time before we find buyers jumping into this market. I think that eventually we go to the 7700 level above which is the next large, round, psychologically significant number, and an area that we had tested the last week.

If we were to break down below the 7600 level, that would be very negative sign, perhaps sending the FTSE 100 down to the 7550 level, perhaps followed by the 7500 level after that. The markets will continue to be a bit thin as traders are just now starting to come back to work, but we have been in a longer-term uptrend, so it makes plenty of sense that the pullbacks at this point should continue to be thought of as value propositions the people will take advantage of. Buying on the dips ensures that you are not only going with the longer-term trend, but you are getting a bit of value as well. After all, when things become “too cheap”, this time to start buying. The FTSE 100 does offer this occasionally, as we have seen so much in the way of a bullish move.

FTSE 100 Video 03.01.18