FTSE 100 Price Forecast January 30, 2018, Technical Analysis

The FTSE 100 rolled over a bit during the trading session on Monday, as we continue to see a lot of noise in general, with the 7700-level offering resistance. If we can break above there, the market probably goes towards the 7750 handle, but it will take some effort to get above there. A pullback from here is probably what we are going to see, but I think there’s plenty of support to keep this market higher. The 7600 level is a bit of a strong floor in the market, so it’s not until we break down below there that I think we can sell. Even then, there is a massive amount of support at the 7500-level underneath, which is essentially the bottom of the entire uptrend.

The GBP/USD pair rising as of late has put some downward pressure on the FTSE 100, but in the end, it’s also a sign that the British economy could be strengthening. If that’s the case, the FTSE 100 should eventually do well, and I think we are starting to see a bit of a rotation do to the fact that initially people had bought the FTSE 100 based upon the cheapness of British export, but now are starting to look at it in terms of corporate earnings, which is a much more sustainable move anyway. I like buying dips, unless of course we were to break down below the 7600 level, and even then, it’s only a short-term affair to the downside from what I see.

FTSE 100 Video 30.01.18