FTSE 100 Price Forecast October 18, 2017, Technical Analysis

The FTSE 100 initially tried to rally during the day on Tuesday, reaching towards the 7550 handle. That’s an area where we had seen resistance in the past couple of days, and that was true again during the Tuesday trading session. There’s also significant support below at the 7500 level, so I believe that it’s only a matter of time before market participants start buying as we reached towards that level. Given enough time, we should then go to the 7600 level, and then perhaps even the 7750 level. Lately though, this market has gone sideways as we are awaiting results of conversations between London and Brussels, so I think that there is a lot of volatility ahead, and I think that the markets are a bit tentative to say the least, but I do prefer the upside in general.

Even if we did breakdown, I think there is plenty of support below at the 7400 level, and that being the case it’s likely that the markets are going to be a “buy on the dips” situation regardless, and given enough time I suspect that the FTSE 100 will continue to be very bullish overall. I don’t think that there will be of a breakdown below the 7400 level, and because of this I believe that the dips offer plenty of value. Ultimately, I believe that the FTSE 100 continues to be bullish yet choppy. I think if you add to your position slowly, you should continue to benefit from the longer-term move, which has been relentless in its steadiness. Ultimately, I believe that adding on short-term dips to a larger term core position is the best way to go. The overall attitude of the markets is that the British pound is historically cheap, and that of course helps exports coming out of the kingdom.

FTSE 100 Video 18.10.17