FTSE 100 Price Forecast January 23, 2018, Technical Analysis

The FTSE 100 pulled back a little bit during the trading session on Monday, but we are starting to see a lot of support underneath. The 7700 level has a certain amount of psychological significance, and of course the buyers are going to be attracted to it. It looks as if we will start reaching towards the 7800 level, and then eventually the 7900-level followed by the 8000 handle which is my longer-term target. I believe that if we break down below the 7680 handle, at that point we will probably pull back to the 7600 level, which I see as massively supportive.

If we were to break down below that level, that could change everything. Nonetheless, I still think that the buyers are attracted to this market and that they will be willing to pick up value. By using the CFD market, and not one of the futures exchanges, and you can add slowly during the pullbacks, as it allows you to build up a position for the longer-term move. Remember, markets need to digest massive moves higher, and we have recently seen a very slow, steady, and reliable uptrend.

When I do like about the pullback has been that has been very calm and orderly, and that tells me that there is no sense of panic out there when it comes to the FTSE 100, and I believe that a lot of people will look at these pullbacks as an opportunity to get involved for those who missed the move higher.

FTSE 100 Video 23.01.18

This article was originally posted on FX Empire

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