FTSE 100 Index Price Forecast October 6, 2017, Technical Analysis

The FTSE 100 rallied on Thursday, using the 24-hour exponential moving average as support. We broke above the 7500 level, which is a very bullish sign, an area that I have been targeting for a while. Now that we have broken above a, I think it’s only a matter of time before we go much … Continue reading FTSE 100 Index Price Forecast October 6, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Thu, Oct 5, 2017, 11:20 PM

The FTSE 100 rallied on Thursday, using the 24-hour exponential moving average as support. We broke above the 7500 level, which is a very bullish sign, an area that I have been targeting for a while. Now that we have broken above a, I think it’s only a matter of time before we go much higher, perhaps looking towards the 8000 level over the longer term. I think pullbacks again offer buying opportunities, and with the British pound falling apart, this makes British exports cheaper, which of course helps the FTSE 100 overall. There are a lot of exporting companies in the FTSE 100, so I think that the correlation should continue into the future. I think that the 7470 level should offer enough support to send this market to the upside. The 7600 level above will be the first target, and I believe that short-term pullbacks are value.

Longer-term, I like this market, and I believe that the FTSE 100 will continue to show signs of bullish pressure. I do not want to short this market until we could break down below the 7400 level, and even then I think it’s a short-term selling opportunity. Ultimately, this market continues to see volatility, mainly because of the uncertainty when it comes to the British economy after leaving the European Union. In the short term though, it seems as if the market is very bullish, so I certainly think that short-term traders will continue to be attracted to this market. Adding slowly might be the best way to deal with this market, as the volatility gets somewhat muted when you’re profit and loss is much smaller than a full position started out immediately. Ultimately, this is a market that I like but I also recognize will be held hostage the headlines coming out of the negotiations between London and Brussels.