FTSE 100 Price Forecast March 27, 2018, Technical Analysis

The FTSE 100 rallied over 1% during the session on Monday, as the 6900 level has broadened buyers. The 7000 level above should be resistance though, because it was so supportive in the past. It is also a large, round, psychologically significant number, so I think that if we can close above there on the daily chart, then the buyers may have just saved the index from falling significantly. Alternately, the 7000 level could offer significant resistance as one would expect from a technical analysis standpoint, thereby offering a classic retest of previous support as resistance. At that point, I would anticipate that we would break down towards the 6800 level, and then possibly 6500 after that.

I believe that no matter what happens, we will probably see a lot of choppiness, as most of what will be moving the markets will be coming out of the mouths of politicians, and therefore there will be a lot of uncertainty. I think that the FTSE 100 closing above the 7000 level could send the market looking towards the 7250 level, but if we were to break down at the 7000 handle, the market will probably go down to the 6800 level.

I think that the markets will continue to be very choppy, so keeping a small position will probably be the most important thing to remember, because when headlines move markets, it seems to be very unstable at times. Ultimately, once you get the direction right, then you can add to your position.

FTSE 100 Video 27.03.18