FTSE 100 Price Forecast July 18, 2017, Technical Analysis

The FTSE 100 had a very choppy session on Monday, as we continue to bang about the 7400 level. I think that this market is probably going to continue to be very choppy, but if we can break above the 7425 level, we will be free to go much higher. I do think that the market probably goes higher over the longer term, but the recent action in the GBP/USD pair is probably causing a bit of concern about exports. However, we have broken above a significant resistance barrier and more importantly, out of a consolidation zone, so I think that the markets will probably continue the move higher.

Buying dips

I continue to believe that buying dips in this market is probably the best way to go, as there is a significant amount of value to be found in the FTSE 100. We are in a longer-term uptrend anyway, so I think that it is still going to be much more prudent to be a buyer than a seller. I think that the market will continue to see volatility, but longer-term traders are certainly hanging on to bullish positions in my estimation. With this in mind, I believe that we will probably go looking for the 7500 level over the longer term. It’s going to take a while to get there, but I do think we reach that level in the next couple of weeks, or at the very least by the end of summer.

FTSE 100 Video 18.7.17