Yahoo Finance FTSE 100 Index Price Forecast October 19, 2017, Technical Analysis
The FTSE 100 rallied slightly during the day on Wednesday, but then pulled back a bit from the 7550 level. I believe that the market continues to consolidate between the 7500-level underneath, and the 7550 level above. Given enough time, the market should continue to go above the 7550 level, and reach towards the 7600 level. The market has been going sideways for several days, as the 24-hour exponential moving average continues to be flat. The market has recently been bullish anyway, so once it broke above the 7500 level, the market may need to consolidate some of the gains, and digest the bullish momentum. Given enough time though, this should lead to continuation, as is typically the way that these moves happen.
If we were to break down below the 7480 level, I think at that point we probably drop down to the 7400-level underneath. That’s an area that would be minor support, but quite frankly it wouldn’t surprise me at all to go to 7300 if we do get a breakdown. This uptrend has been rather strong, and I think that the longer-term trend should continue the same type of momentum. This is especially true as the British pound has been historically cheap, but even if it does rise, we could get a bit of a bid in the FTSE 100 as people begin to understand that the United Kingdom isn’t going to implode once it leaves the European Union. Either way, there’s probably longer-term bullish pressure just waiting to happen. In the end, it’s likely that we will continue to see a move towards the 8000 level above, and possibly even higher than that. I have no interest in shorting this market for more than a couple of days if we get the breakdown, and believe that it’s only a matter of time before the longer-term buyers get involved and push with a buy-and-hold attitude.
FTSE 100 Video 19.10.17
This article was originally posted on FX Empire
