FTSE 100 Price Forecast September 19, 2017, Technical Analysis

The British index was noisy initially during the trading session on Monday, but then broke out to the upside. It looks as if we are ready to continue going higher, and when I look at this market from a longer-term perspective, I see a major resistance barrier near the 7600 level. That’s an area that will cause a certain amount of psychological resistance, but I think that once we break above there we can really start to take off, and extend the longer-term uptrend. At that point, I anticipate that the market will go looking towards the 80,000-handle based upon the longer-term consolidation rectangle.

The 7400-level underneath should be supportive, so if we were to roll over a bit, I think that we will probably be able to stay above that level. I think that 50 points to the downside is probably about as bad as it gets right now. I also recognize that the negotiations between the United Kingdom and the European Union will have an effect on this rally as well, but I think at this point it’s only a matter of time before we find value hunters on dips. If we were to break down below the 7400 level, then I think the market goes down to the 7300 level, where we have seen support just a couple of weeks ago. In general, I think that buying is the only thing you can do with any type of certainty or position size. I have no interest in shorting, as I think that eventually the longer-term upward momentum picks back up, perhaps after New Year’s.

FTSE 100 Video 19.12.17