FTSE 100 Price Forecast July 13, 2017, Technical Analysis

The FTSE 100 had an explosive moved to the upside on Wednesday, slicing through the 7400 level. The breaking of that level should send this market looking towards the 7500 level, given enough time. I believe that the market will find value in pullbacks, and that the 7400 level should now be supportive. I believe that the choppiness that we have seen in the past should continue to be the case going forward, but it is likely that the overall attitude will be bullish. I believe that the 7500 level will be massively resistive, but given enough time I think we continue the uptrend from the longer-term charts. I think a lot of the motion in this market will probably be in reaction to the negotiations between London and Brussels, so you keep your eye on any type of headline coming across the wire as a potential market mover.

Buying dips

In general, I am buying dips so I think that the market offers value from time to time, and that something that you should pay attention to. Given enough time, I think we will go looking for the 7750 level, which is my longer-term target. If we break down below the 7300 level, that would be a very negative move, but I don’t think that’s going to happen anytime soon. I am bullish the FTSE 100, mainly because the British pound is still historically low. That helps with exports coming out of the United Kingdom and that of course helps the FTSE 100 as it has a lot of exporting companies represented. If we did breakdown below the 7300 level, the market will probably go looking towards 7000. That seems to be a bit of a fantasy now though, because the impulsivity of the last couple of sessions shows just how much buying pressure has entered the market.

FTSE 100 Video 13.7.17