FTSE 100 Price Forecast March 5, 2018, Technical Analysis

The FTSE 100 has fallen yet again on Friday, as we are reaching towards the lower levels of the overall consolidation. There is a significant amount of support underneath that extends down to the 7000 handle, so it’s likely that we will find buyers sooner or later. However, if we were to break down below the 7000 handle, this is a structurally negative move, and we should continue to go much lower. Short-term rallies should be selling opportunities until we get some type of bolster in the overall attitude of the markets. I think that we will continue to see a lot of concern going into the weekend, and perhaps coming out of the weekend as the Americans adding tariffs to steel and aluminum could open up a trade war. A lot of traders are very concerned about that.

Ultimately, I believe that the market should continue to be very noisy, but we are starting to become a little bit oversold. I think by being patient and waiting for a bounce on a daily chart, you could take advantage of value and what has been a strong uptrend. However, if we break down below the 7000 handle, it’s very likely that we are going to continue to go much lower. There are a lot of moving pieces and the risk appetite of the world right now, and the FTSE 100 and forcefully seems to be suffering at the hands of this. I also suspect that is a little bit of position covering going into the weekend.

FTSE 100 Video 05.03.18