FTSE 100 Price forecast for the week of September 25, 2017, Technical Analysis

The FTSE 100 rallied during the week, slamming into the 7300 level. This is an area that has been supportive in the past so it makes sense that it would be resistive now. If we can clear the top the candle for the week, I think that the market will go looking towards the 7400 level, followed very quickly by the 7500 level. I don’t have any interest in trying to short this market, because I think there is a massive amount of support just below, and most certainly at the 7100 level. In fact, although the momentum has slowed down significantly, I think that’s a good thing in this market as it gives the market more of a sustainable rally. I don’t think that a breakdown is imminent, but if we did turn around and sliced through the 7000 level, I would have to start thinking about this market and other terms.

On a breakout to the upside, I anticipate that the market will go looking towards the 7900 level over the longer term, and then of course the psychologically significant 8000 handle. If you look at markets over longer term charts, you see that they are attracted to these large round numbers, so I think 8000 will be all but impossible to avoid. Obviously, headwinds can appear from time to time but it appears to me that the market is set on going higher from here. If we did roll over, it could be very sudden and it most certainly would have some type of external catalyst, as the market itself looks very healthy. Ultimately, I’m a buyer of dips, and am willing to hold on to a core position in the FTSE 100.

FTSE 100 Video 25.9.17