FTSE 100 Index Price Forecast November 23, 2017, Technical Analysis
The FTSE 100 rose initially during the trading session on Wednesday, initially reaching towards the 7460 handle before rolling over. The fact that we have formed a bit of a shooting star the daily chart suggests to me that we are going to continue to see bearish pressure. However, I also recognize that the 7400-level underneath should be important and possibly even supportive. Some type of bounce from there should be a nice buying opportunity, as it would show a significant support at a major level. Remember, the 7400 level is essentially “fair value” of the longer-term consolidation between the 7200 level on the bottom and the 7600 level on the top. Because of this, I think it is completely natural to see a lot of noise in this area, so we need to see some type of impulsive move and more importantly continuation to get involved.
We have made “a higher high” on the hourly chart, so we are starting to see the beginning of a trend change. If we break above the 7460 level, then I think that the market is going to continue to go towards the 7600 level. A break above there should be a sign of continuation and a larger move just waiting to happen. However, if we were to break down below the 7350 handle, I believe that the market would probably drop towards the lower reach of the overall consolidation, meaning that we would go down to the 7200 level which has been so important in the past. I think areas like this tend to be very difficult to trade, so keep your position sizes small, and add once the trade moves in your favor, regardless of whichever direction we get after the move.
FTSE 100 Video 23.11.17
This article was originally posted on FX Empire
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