FTSE 100 Index Price forecast for the week of November 20, 2017, Technical Analysis
The FTSE 100 Index fell during the week, breaking below the 7400 level. Now that we are below there, it’s likely that we will continue to drift a bit lower, perhaps reaching towards the bottom of the recent consolidation area, which I see as the 7200 level. The 7400 level is essentially “fair value” in the market, and a breakdown below the weekly candle from this past week for me is a short-term selling signal, perhaps for a week or two. I also believe that the 7200-level underneath continues to be supportive, and I do not expect to see this market break down below there. The choppiness continues to be a mainstay of this market, but given enough time I expect to see the FTSE 100 rallied significantly, and break above the 7600 level for a longer-term move to the upside.
I believe that eventually we will find value in this market, and I’m essentially betting on that. The pullback and perhaps a breakdown below there should send this market lower, but I believe that longer-term, we will get the buying pressure necessary to offer more of a “buy-and-hold” scenario. Because of this, I am going to be very patient as far as putting on long-term trades in the FTSE 100, but I believe the clarity is coming. If somehow we were to break down below the 7200 level, we would then go looking towards the 7000 level which is the absolute bottom of the uptrend. If we broke down below that level, the market could fall rather significantly, and at that point I would become aggressively short. Longer-term, this is a market that should go looking for 8000 from my technical analysis work over the last several months.
This article was originally posted on FX Empire
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