FTSE 100 Price Forecast January 31, 2018, Technical Analysis

The FTSE 100 fell significantly during the trading session on Tuesday, breaking down below the 7600 level. As an area that has been supportive in the past, and we could bounce from here, but I think that given the volume that we have seen that we could also drift lower. I recognize the 7500 level as even more support, so it’s not until we break down below there that I think the uptrend has changed. Ultimately, the market should continue to go higher, perhaps reaching towards the 7800 level. This is a market that should continue to be noisy, but with the strengthening British pound, we are starting to see market participants selling the FTSE as it makes British exports more expensive.

Longer-term, I believe there is plenty of support underneath, and I think that we will eventually find a reason to go higher. However, I would stand on the sidelines as far as buying is concerned, as the markets have shown so much in the way of noise. That noise continues to keep traders at bay, so I think that the noise will continue to be a situation where you can take advantage of based upon value, but I think that it’s very difficult to jump in and start buying with both fists, I think that you need to add slowly if you are trying to build a bit of a position, but I prefer to wait for a supportive daily candle to get involved, or some type of impulsive move to the upside with volume.

FTSE 100 Video 31.01.18