FTSE 100 Index Price Forecast June 23, 2017, Technical Analysis
The FTSE 100 broke down significantly at the open on Thursday, crashing into the 7400 level. However, this is an area that has been important in the past, and the significant support that we saw during the day caused a bit of a bounce. As I write this, we are currently testing the 7425 level, and if we can break above the 24-hour moving average, I feel that the market will then go looking towards the 7475 handle again. Above there, the market then goes to the 7500 level. I have no interest in shorting this market, least not until we break down below the 7375 handle, which would be a complete collapse of support. Keep in mind that this market is going to move around quite a bit due to the headlines coming out of the London and Brussels, as it will cause quite a bit of noise. The real question is whether the United Kingdom will continue to have strong exports. If it does, that helps the FTSE 100 longer term.
Looking for impulsivity
I believe that looking for impulsivity is probably about the best thing you can do. We don’t have the right now, so building up a slow position might be the best way to go, least until we break down significantly. If we did breakdown significantly, then the market would probably accelerate to the downside, looking for the 7300 level. Ultimately, the market is going to be one that is probably best approached from the longer-term perspective, as we have several months of negotiations between London and Brussels ahead of us, offering plenty of issues just waiting to happen as far as headlines are concerned. I do believe that longer-term the buyers will return; the question now is when?
FTSE 100 Video 23.6.17
This article was originally posted on FX Empire
