FTSE 100 Price Forecast September 20, 2017, Technical Analysis

The FTSE 100 rallied a bit during the day on Tuesday, reaching towards the 7300 level. A break above that level should send the market much higher, perhaps looking towards the 7375 level. Ultimately, there is a gap just below the 7300 level that will make this move a bit difficult, so I think that the GBP/USD pair breaking out to the upside would be very negative for this market. Currently, looks as if we are starting to see bullish pressure jumping into the market, and I do prefer buying over selling. However, I would need to see the 7300-level broken to the upside to feel comfortable.

The gap below

I believe that the gap below from the Monday session is going to offer a bit of support. I think that given enough time, if we pull back there it’s likely that the market will start buying. Ultimately, this is a market that I think is trying to find its footing, and I think that the market is most certainly going to favor the upside overall, as the longer-term trend is to the upside. I think that the 7100 level underneath the 7200 level is also massively supportive. Because of this, I think it’s only a matter of time before the uptrend continues, but volatility will probably be a mainstay of this market. The FTSE 100 is highly correlated to the British pound and British exports, so keep in mind that the trade balance of the country is highly influential as to where this market goes next. I think that the recent softness and the British pound has helped, as it has been overbought. However, with the Federal Reserve coming out with an interest rate decision and more importantly a statement today, we could see a sudden spike in the value the British pound, causing a pullback. Keep in mind that this is a tertiary reason to short this market and not a main one.

FTSE 100 Video 20.9.17