FX Empire

FTSE 100 Index Price Forecast October 9, 2017, Technical Analysis

The British index went sideways during most of the session on Friday, as we continue to top of her above the 7500 level. That’s an area that should offer support, so I think that short-term dips will probably find buyers. The British pound falling has been helping as well, as it increases exports out of … Continue reading FTSE 100 Index Price Forecast October 9, 2017, Technical Analysis · FX Empire
Christopher Lewis
Updated

The British index went sideways during most of the session on Friday, as we continue to top of her above the 7500 level. That’s an area that should offer support, so I think that short-term dips will probably find buyers. The British pound falling has been helping as well, as it increases exports out of the United Kingdom and by extension keeps the value of companies on the FTSE 100 stronger. I think that the 7500 level being broken above is a psychological victory, and it’s only a matter of time before the buyers return so that we can continue the longer-term uptrend. Even if we were to break down from here, I think that the 7400 level underneath is supportive. Because of this, I believe in buying the dips, but I think it’s only a matter of time before we continue to the upside either way. Because of this, I am willing to buy this market in small increments and build a larger position going forward. I believe that the market is probably going to go looking towards the 7750 level over the longer term, and then after that the 8000 handle.

Obviously, there are headline risks when it comes to trading anything British, but I think at this point the softening currency continues to lift the stock markets overall. Because of that, I am a buyer of dips regardless, and no interest in selling until we break down below the 7400 level, as it would signify that we could get a possible longer-term correction. Having said all of that, I still believe that the buyers will continue to look at the exporters in the United Kingdom as potential winners in the currency war, as the British pound is getting absolutely pummeled as of late.

FTSE 100 Video 09.10.17

This article was originally posted on FX Empire

More From FXEMPIRE:

and

Recommended Stories