The FTSE 100 was extraordinarily choppy during the day on Friday, as the British pound Valley broke out against the US dollar. Because of this, there is a certain amount of concern that British exports will fall, but currently I believe that the market did overreact initially, and when I look at the charts it looks as if the 7375 level is looking to be somewhat supportive. I think that we could bounce towards the 7400 level, and then perhaps even higher. The market recently breaking above the 7375 handle is a strong sign, and this pullback is simply a retest of the previous resistance. That’s a common thing in technical analysis, so I feel that if we can break above the 7400 level, the market should continue to go even higher.

Buying dips

I continue to buy dips in general, so I think that given enough time we will go towards the 7475 handle. The market is very choppy, so traders will have to be very strong-willed as the noise in the market will be extreme. Even if we did breakdown from here, I feel that there’s even more support at the 7300 level, so currently I’m not looking to sell the FTSE 100. It’s not to say won’t change, but right now I think that this pullback is well within most technical analysis norms. Given enough time, I fully anticipate that the FTSE 100 will reach towards the 7500 level

This article was originally posted on FX Empire

More From FXEMPIRE:

• Dow Jones 30 and NASDAQ 100 Price forecast for the week of July 17, 2017, Technical Analysis

• Dow Jones 30 and NASDAQ 100 Price Forecast July 17, 2017, Technical Analysis

• Stocks Rise as Investors Increase Bets for Strong Earnings Season

• E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 14, 2017 Forecast

• E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – July 14, 2017 Forecast

• Market Snapshot – Focus on the Dollar