FTSE 100 Price Forecast January 4, 2017, Technical Analysis

The FTSE 100 continues to rally, as we initially went sideways, and then shot towards the 7700 level. That’s an area that is slightly resistive, but I think eventually we will break out above there. Ultimately, I think once we break above there it’s likely that the market will go to the 7800 level. Short-term pullback should continue to be buying opportunities, and the 7600 level being broken would change a lot of things. However, with the British pound being historically cheap, it makes sense that the overall attitude of the FTSE 100 should be positive. Stock markets in general have been positive as well, so that of course helps.

Longer-term, I believe that we are going to go to the 8,000 handle, which is the overall target I have mentioned previously. If we do break down below the 76 level, the 7500 level after that should be the massive floor in the market to keep the overall trend positive. That’s not to say that it will be choppy, but I look at pullbacks as potential value plays in a market that has outperformed most other stock markets that I follow. It’s possible that perhaps we need to grind sideways in general with a slightly upward till as we may have gotten ahead of ourselves during 2017, but at this point I don’t think it’s possible to short this market above the 7500 level. So, because of that, I’m looking for either a buying opportunity, or I’m sitting on the sidelines when it comes to the London index.

FTSE 100 Video 03.01.18