FTSE 100 Price Forecast July 5, 2017, Technical Analysis

The British index rallied during the day on Tuesday, as the market continues to find reason to rally. I believe that we are going to go looking for the 7400 level above, which should now be resistive. Ultimately, this is a market that continues to be very choppy, but I think we are trying to build a bit of a base after a significant selloff. Part of what has been so negative for the FTSE 100 has been the British pound being sold off, which of course helps exports when it comes to the United Kingdom. As exports are increasing, that generally puts more demand for the FTSE 100 as the index has so much in the way of exporting companies. Because of this, the market looks likely to follow the GBP/USD pair, and inversely.

Buying dips?

I think at this point, it may be time to buy dips, but especially if we can break above the 7400 level. If we were to break down below the 7300 level, that would be very negative, and that should send the sellers into the market, reaching towards the 7200 level after that. That being the case, it’s likely that a breakdown could be drastic and send this market down much quicker. I think that a rally is going to be slow, but it could be somewhat relentless as the market continues to look at the overall currency headwinds as being in the rearview mirror. If that’s the case, I think that we will probably go looking for the 7500 level, and then higher than that over the longer term. Regardless what happens, I expect that it will be very choppy in general, and that should continue to be the main theme of this market.

FTSE 100 Video 05.7.17