FTSE 100 Price Forecast September 27, 2017, Technical Analysis

The FTSE 100 had a negative session on Tuesday, trying to break above the 7300 level. If we can clear the 7320 level, I think at that point we will continue to go much higher. This is an area that will course be a bit resistive, so it’s not a huge surprise that we pulled back, but I don’t think there is too much to read into this move. Because of this, I believe that we will get a supportive candle that we can serve buying, but if we were to break down below the 7240 handle, then it’s likely that the market will drop to try to fill the gap from a couple of weeks ago, which means a move down to the 7210 region. Ultimately, this is a market that I believe will continue to see a lot of choppiness, as there are a lot of concerns about the Bank of England raising interest rates, and of course the headwinds of a stronger than anticipated British pound for exporters. This index is highly flush with exporters, so it’s difficult to imagine that the currency issue won’t be in mind.

Volatility

I think that the volatility in this market will continue, and therefore I like the idea of trading and smaller positions. However, a clearance of the 7325 level would give me enough confidence to start adding to my position to the upside. As far as selling is concerned, I would still keep my positions relatively small, at least until we were to break down below the 7200 level, which would be a very negative sign. In this region, I anticipate that there is going to be a lot of noise, so keep that in mind and be aware that the choppiness is probably here for a while.

FTSE 100 Video 27.9.17