FTSE 100 Price Forecast June 26, 2017, Technical Analysis

The British index initially fell on Friday, but found support at the 7400 level. In fact, and found enough support to bounce towards the 7450 level where it found sellers. I believe that the market will continue to consolidate in this general vicinity, and this being the case it’s likely that we will see choppiness. If we can break above the 7450 handle, the market should be free to go to the 7500 level after that. The FTSE 100 has benefited from a reasonably weak British pound, and that should continue to be the case. I think that the 7400 level below continues to be a bit of a floor, and it extends down to the 7380 handle. A break above the 7500 level should send this market towards the 7550 level.

Buying dips

I believe that if we do breakout, we can buy short-term dips, adding slowly to a position that has been profitable to the upside over the last several months. If we can break above the 7550 handle, the market should then go to the 7600 level, and then eventually the 7700 level. This is a market that continues to be very opportunistic, taking advantage of the situation in the market that allows for weakness to be looked at as value that we can take advantage of. Ultimately, I believe that we do go to the 8000 handle but it’s going to take a long time to get there as there are a lot of headlines coming out of both London and Brussels that could cause noise but the longer-term fundamentals show that we should continue to favor the upside. I look at the recent pullback over the last week or so as a buying opportunity and believe the rest of the market will as well.

FTSE 100 Video 26.6.17