FTSE 100 Price forecast for the week of July 17, 2017, Technical Analysis
The FTSE 100 had a choppy week, as we touched the 7300 level on the bottom, and even broke above the 7400 level above. However, the British pound has broken out against the US dollar and that works against the export coming out of the United Kingdom. Because of this, the FTSE 100 has suffered, as it is a very sensitive to exports. With the resulting candle, it looks as if the market is a bit neutral, but we have seen such a massive amount of support at the 7300 level, I think that it may continue to attract buyers. If we can break above the top of the weekly candle, I think we will then eventually go above the 7500 level, and grind our way to the upside. Enough time, I still believe that the buyers are very much in control, but we may need to chop around in the short term.
100-point intervals
It appears that the markets have been trading in 100-point intervals, as you can see marked on my chart. I believe that once we break above the candle you should look to the next hundred level. So, for example, if we break down below 7300, I think we will then go look to find the 7200-level underneath. Alternately, if we break above the top of the candle for the week, the market should then go to the 7500 level. We are in a longer-term uptrend, so even though we have seen quite a bit of choppiness, the trend still very much intact and of course you should favor longer-term that the buyers will continue to be in charge. With this, I fully anticipate that the market will eventually break out to the upside.
This article was originally posted on FX Empire