FTSE 100 Price Forecast June 30, 2017, Technical Analysis

The FTSE 100 initially gapped higher at the open on Thursday, and then reached towards the 7450 handle. We found enough resistance there to turn around and break down below the 7400 level, and then eventually down to the 7350 level. This is a very negative sign, and I believe that the market is going to go looking for 7300. A lot of this has to do with the British pound accelerating to the upside, which of course hurts British exports, and that should continue to cause a lot of volatility in the marketplace. I think rallies that show signs of exhaustion near the 7400 level would also be a selling opportunity, so I like the idea of shorting this market suddenly. Alternately, if we broke above the 7425 handle, then it shows enough support to turn things around again. However, we will probably need to see the British pound fall in value to make this market accelerate to the upside.

Choppiness

I believe that the choppiness should continue to be part of this market, but with the sudden interest in buying the British pound, it looks as if the FTSE 100 should continue to sell off. If we break down below the 7300 level, then things start to accelerate to the downside even more. Regardless what happens, this is probably going to be a very volatile and difficult market to deal with. If we do break above the 7425 level, the market should then go to the 7500 level which would be the next major target for traders. I have no interest in trying to force the trade, because quite frankly there are easier markets to trade if you want to start buying. However, pay attention to the GBP/USD pair. If it goes lower, this market should go higher and of course vice versa.

FTSE 100 Video 30.6.17