FTSE 100 Price Forecast October 27, 2017, Technical Analysis

The FTSE 100 has been very bullish during the day on Thursday, wiping out quite a bit of the losses from the Wednesday session. We still have the 7500 level above though, which of course is going to cause a certain amount of structural and psychological resistance. If we can clear that area, and close above there today, I think that the market will continue to go much higher. We have seen the British pound roll over a bit during the day and that of course helps the idea of British exports around the world. If that’s the case, I think that the market will then go looking towards the 7550-level next.

Alternately, if we find a significant amount of resistance in this area and roll over, we could go down to the 7435 level rather rapidly, wiping out the gains from the Thursday session. While I do not think that trading this market is appropriate today, I would be the first to admit that today could be very important. Because of this, you should be paying attention to how the daily close forms, and whether it is above the 7500 level or not. It’s simple for me, I am a buyer above that level, and a seller below it. I also recognize that there are a lot of moving pieces, as the negotiations between London and Brussels continues to be a major player in this market and influence obviously. That being said, expect a lot of choppiness and noise, but by waiting for the longer-term signal, you get on the right side of the market and can enjoy the profits while adding to your position slowly. The FTSE 100 is at a major inflection point, so caution is probably the best way to play this market.

FTSE 100 Video 27.10.17