FTSE 100 Price Forecast November 6, 2017, Technical Analysis

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The FTSE 100 initially fell during the trading session on Friday, reaching down towards the 24-hour exponential moving average, after breaking out to the upside. Now that we have pulled back to the 7550 level, we found a bit of support, and I think that this bounce shows that we are going to continue to … Continue reading FTSE 100 Price Forecast November 6, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Fri, Nov 3, 2017, 11:13 PM

The FTSE 100 initially fell during the trading session on Friday, reaching down towards the 24-hour exponential moving average, after breaking out to the upside. Now that we have pulled back to the 7550 level, we found a bit of support, and I think that this bounce shows that we are going to continue to see buyers jump into this market and reach towards the 7600 level above. If we can break above that level, the market should continue to go even higher, perhaps reaching towards the 8000 level longer term. The volatility should continue, but I think one of the things that you should pay attention to the most is the British pound, as it has formed a shooting star on the weekly chart. A breakdown below the 1.30 level should send the British pound much lower, and that should continue to make the idea of buying the FTSE 100 attractive, as the exports out of the United Kingdom is a main driver of this market as of late.

With the Bank of England looking very unlikely to continue raising interest rates, I believe it’s only a matter of time before the British pound struggles, and that of course should send this market higher. I think that the 7500-level underneath should continue to be the “floor” in the market, and if we can stay above that level, selling the FTSE 100 is all but impossible. If we were to break down below that level, that would be catastrophic, and would send me selling the FTSE 100 aggressively, as I think we could breakdown rather significantly at that point. All things being equal though, I think that there is about an 85% chance that we continue to rally, as we have been so strong over the last several months.