FTSE 100 Price forecast for the week of January 29, 2018, Technical Analysis

The FTSE 100 pulled back during the week, testing the 7600 level, an area that has been important in the past. I believe that the market continues to be very noisy, and I think that will be the main theme here. However, the 20 SMA continues to point to the upside, so it makes sense that we would continue to go much higher. Longer-term, I anticipate that the market should go to the 8000 level over the longer term, which is a major target. I believe that pullbacks offer value, just as we have seen. The support extends down to the 7200-level underneath, an area that I would be surprised if we attempted to get to again. I’m looking for any reason to go long of the FTSE 100, as it has been so bullish and reliable over the last several months.

The 7200 level being broken to the downside would be very negative, perhaps sending this market to the 7000-handle next. A breakdown below there turns the market around completely but I don’t think that there is more than about a 10% chance of this happening. Granted, the GBP/USD pair rallying over the last couple of weeks hasn’t helped, but in the long-term I believe that we will continue to see the FTSE looked at as an opportunity to the traders to take advantage of what should be a stronger moved to the upside.

FTSE 100 Video 29.01.18