FTSE 100 Price Forecast February 19, 2018, Technical Analysis

The FTSE 100 went higher during the session on Friday, clearing the 7250 handle. It looks as if we are going to continue to go higher longer-term, and I do believe that the dips will continue to offer buying opportunities. · FX Empire

Christopher Lewis

Updated Fri, Feb 16, 2018, 11:36 PM

The FTSE 100 has rallied a bit during the week, and Friday was no different. I believe that we will continue to go higher, and that there is a significant amount of support just below. I believe that the 7000-level underneath is the “floor” in the uptrend, so if we remain above there I am looking to buy dips and I don’t have any interest in shorting this index. Ultimately, I think that the market will end up going towards the 7500 level, but obviously it will take a while to get there.

I think that it will be very choppy, and obviously there are going to be a lot of concerns about headline risk coming out of the negotiations between the European Union and the United Kingdom, and of course there is also the possibility of currency headwinds as the GBP/USD pair has been strengthening. However, I believe that overall, we will see buying pressure, at this point it’s more a question of how quickly we will rise as far as I am concerned.

I think that short-term dips continue to offer value, and I think that should give you opportunities to take advantage of what has been a very strong run over the last several months. I think that given enough time, the market should find plenty of participants. I also recognize that headline risk could come in and do damage, perhaps coming out of the mouth of someone like Theresa May, but that should be short-term damage in general, offering opportunities to pick up value just as any other DIP will.