FTSE 100 Price Index forecast for the week of December 4, 2017, Technical Analysis

The FTSE 100 Index went back and forth during the week, initially tried to rally but then broke down below the 7400 level. This suggests that the market is ready to drop down towards the 7200-level underneath, which is the bottom of the overall consolidation area that we have been in over the last 6 months or so. At the bottom, I expect to see a lot of buying opportunities at the 7200 level, just as I expect to see a lot of resistance near the 7600 level. That’s a 400-point range, so I think that if we can break out to the upside, it allows the market looking for the 8000 level after that. A breakdown below the 7200 level sends this market looking for the 7000 level yet again. In general, this is a market that continues to find buyers on dips, and therefore I do favor the upside in general.

This market will continue to be very noisy, because there is a lot of uncertainty when it comes to the United Kingdom after the break away from the European Union, and as that is the case, it makes sense that the FTSE 100 may lag other indices around the world a bit. I believe that the market is trying to build up enough momentum to finally break out, but it’s going to take a while to build up the necessary momentum, so I think that a slow and general grind to the upside is probably what we’re going to see on these pullbacks. I’m not looking for an explosive move anytime soon.

FTSE 100 Video 04.12.17