FTSE 100 Price forecast for the week of February 12, 2018, Technical Analysis

The FTSE 100 broke down significantly during the week, reaching down towards the 7000 handle. If we break down below the bottom of the weekly candle, then I believe that the market is probably going to go down to the 6600 level. However, Friday is showing signs of life again, and it’s likely that we could bounced enough to send the market back towards the 7250 level in the near term. A break above that level sends this market back towards 7500.

The British pound has struggled recently, and that does make British exports cheaper, and that could turn this thing around. It will be interesting to see what happens going forward, and I think that if you are patient enough you should get an opportunity to either pick up value or punish a market that is falling apart. At this point, I suspect that the FTSE 100 is going to be a bit difficult to deal with, as the recent brutality of the selloff has caught a lot of people off guard as of the volatility has been rather subdued.

Ultimately, this is a market that did see a lot of volume pick up during the previous week, so that is one of the things that has me concerned about the stock market. If we can break down below the 6600 level, that would open the floodgates and send this market much lower. There are a lot of concerns around the world with bond yields rising, so caution is advised.

FTSE 100 Video 12.02.18