FTSE 100 Price Forecast August 4, 2017, Technical Analysis

The FTSE 100 exploded to the upside during the session after initially gapping lower on Thursday. This has a lot to do with the Bank of England suggesting that interest rates are going to be hiked anytime soon, and it’s probably going to be 2018 before we see anything close to that. That punished the … Continue reading FTSE 100 Price Forecast August 4, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Thu, Aug 3, 2017, 10:42 PM

The FTSE 100 exploded to the upside during the session after initially gapping lower on Thursday. This has a lot to do with the Bank of England suggesting that interest rates are going to be hiked anytime soon, and it’s probably going to be 2018 before we see anything close to that. That punished the British pound overall, and that of course helps with stocks as it gives us an opportunity to sell British exports to the rest of the world much cheaper. That is important with the FTSE 100, as it is so heavily laden with the exporting companies from the United Kingdom.

Buying dips

I think it’s straightforward at this point, that buying dips will be the way to go going forward. I think that we will eventually break above the 7500 level, and then send the market looking towards the 7600 level after that. Because of this, I think that the market is a buy on the dips as long as we can stay above the 7400 level. Longer-term, I believe that we are going to go towards the 8000 level, which is a longer-term call but I think that is the directionality that we are going to see after the Bank of England has essentially squelched the British pound.