FTSE 100 Price forecast for the week of January 8, 2018, Technical Analysis
The FTSE 100 went back and forth during the week, ultimately settling on a bullish candle in the form of a hammer. The hammer at the top of an uptrend suggests that we are going to see renewed strength, and that perhaps we are ready to break out to the upside. It’ll be interesting to see how the market reacts to headlines coming out of London and Brussels, as we continue to negotiate that exit. Ultimately, a break above the top of the candle, extensively the 7700 level, it’s likely that we continue to reach towards the 7800 level above. If we were to break down below the 7600 level, I think there is a lot of noise underneath, and that the 7500 level will offer support. In general, when you look at the yearly chart, you can see that we have formed an up-trending channel over the last 365 days, and therefore I think that it makes sense that the buyers are going to continue to be attracted to this market place.
I also believe that eventually will go looking towards the 8000 level above, which makes a lot of sense as the large, round, psychological significance of the number cannot be understated. I think that people see a lot of value in the historically cheap British pound as far as exports go, and that should continue to help the FTSE 100 in general. I suspect 8000 will be hit sometime in the next couple of months.
FTSE 100 Video 08.01.18
This article was originally posted on FX Empire
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