FTSE 100 Price Forecast October 23, 2017, Technical Analysis

The FTSE 100 gapped higher at the open on Monday, shot towards the 7550 level, but then found quite a bit of resistance as we rolled over again. I think the market continues to be stock in consolidation between the 7500 level below, and the 7550 level above. Ultimately, the market should continue to chop … Continue reading FTSE 100 Price Forecast October 23, 2017, Technical Analysis · FX Empire

Christopher Lewis

Updated Fri, Oct 20, 2017, 11:17 PM

The FTSE 100 gapped higher at the open on Monday, shot towards the 7550 level, but then found quite a bit of resistance as we rolled over again. I think the market continues to be stock in consolidation between the 7500 level below, and the 7550 level above. Ultimately, the market should continue to chop around, and I don’t think that we are quite ready to break out. Having said that, if we did manage to clear the 7550 handle, it’s likely that the market would continue to go much higher, perhaps reaching towards the 7600-level next, followed by the 7700 level. This is a market that continues to show volatility, and the extreme volatility of course is an opportunity for those who are shorter term traders that employ range bound systems. Such indicators such as the stochastic oscillator might be called for now, but I also recognize that eventually we will break out of this range.

Pay attention to the GBP/USD pair, because the value of the British pound directly influences what happens in the FTSE 100, as it is so heavily laden with exporting companies. Having said that, I believe that we will continue to see a lot of noise, but the overall trend of this market has been higher. I don’t think that’s changing anytime soon, but I also recognize that if we were to break down below the 7490 handle, we could have a bit of a sell off to try to build up support underneath. Either way, it’s good to be a very choppy affair, so it’s likely that the trades should be kept relatively small. Adding to your positions if you can do get the proper breakout or breakdown for your account is probably the best way to go.