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FTSE 100 Price Forecast March 23, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Mar 23, 2018, 04:50 UTC

The FTSE 100 broke down significantly during trading on Thursday, as all stock markets around the world struggled. This is in reaction to the United States signing tariffs against the Chinese, and what looks to be an escalating trade war.

FTSE 100 daily chart, March 23, 2018

The FTSE 100 went sideways initially during the trading session on Thursday, but then broke down below the 7000 level rather rapidly. By breaking the way it did, I think that we are going to continue to see bearish pressure, and the 7000 level should now offer resistance. However, if we were to break above the 7050 level, then the longer-term uptrend should continue. In fact, it looks as if the overall risk aversion is going to pick up, not drop. With tariffs coming into play, that could bring up a massive trade war, which is horrible for stock markets in general.

FTSE 100 Video 23.03.18

I believe that short-term rallies that show signs of exhaustion should be selling opportunities and will be looked at as such. The 6900 level will almost certainly be broken at this point, and perhaps see the market reaching down to the 6800-level next. Expect volatility, but unless we get some type of resolution rather quickly to the trade war issues, stocks could be a very difficult place to be for some time. Otherwise, if we do get some good news, the market probably goes looking towards the 7250 level, but that seems to be but a distant hope at this point as there are so many potential problems out there. Stock markets have been a bit stretched anyway, so the fact that something truly bad could happen is going to continue to cause major issues with equities around the world, and the United Kingdom will not escape these issues.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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