FTSE 100 Price Forecast – FTSE 100 breaks down significantly on Friday

The FTSE 100 broke down significantly on Friday, wiping out all of the gains from the Thursday session. This is in stark contrast to what we had seen on the positive side, but quite frankly this doesn’t surprise me considering that there is so much in the way of volatility around the world, and of course the tariffs being applied by the United States on China does not help. There is a lot of fear out there, and in a state of fear, the first thing that people do is sell anything that has value.

I think there is significant support extending down to the 7600 level as well, so I don’t anticipate some type of meltdown, but I do think that we are essentially stuck in the pink consolidation zone that I have marked on the chart. If we were to break down below the 7600 level though, that could send this market down to the 7500 level rather quickly. There is a significant amount of support down there and psychological support as well. However, if the market were to break down below there, I would suspect that the overall uptrend would be history. I would look for some type of buying opportunity, but we need some type of agreeable outcome to the geopolitical concerns for that to happen. Otherwise, we will continue the noisy downward motion. Keep your position size small if you feel it necessary to be involved in this market.

FTSE 100 Video 18.06.18

This article was originally posted on FX Empire

More From FXEMPIRE:

• NZD/USD Weekly Price Forecast – New Zealand dollar breaks down during the week

• GBP/JPY Weekly Price Forecast – British pound noisy against Japanese yen as trade fears dominate

• Natural Gas Weekly Price Forecast – natural gas markets rally significantly during the week

• USD/CAD Weekly Price Forecast – US dollar rally significantly against Canadian dollar this week

• DAX Weekly Price Forecast – German index rallies for the week

• Gold Weekly Price Forecast – Gold markets fall significantly