Yahoo Finance FTSE 100 Index Price Forecast October 13, 2017, Technical Analysis
The FTSE 100 gapped lower at the open on Thursday, but turned around to not only fill that gap, but broke out to the upside. By doing so, we reached towards the 7560 handle, an area that caused a little bit of a pullback. However, I think there is more than enough support underneath to continue to grind to the upside. The 7500-level underneath continues to be support, and a bit of a “floor” when it comes to the overall trend now. I think that eventually we will go looking towards the 7600 level, with the FTSE 100 showing bits of volatility that you can take advantage of. Pullbacks offer value, and that’s exactly what I look for in these types of trades. We have a significant amount of momentum to the upside as the 24-hour moving average continues to be supportive, and I think it’s only a matter of time before people go value hunting.
Buying on dips
The only thing that I want to do in this market as buying dips show signs of support, in order to build up a larger position that I think will be very profitable longer term. After all, with a lot of the concerns with the United Kingdom leaving the European Union, it’s likely that the value the British pound will remain a bit on the cheap side, and that helps exports. Nonetheless, I think that the FTSE 100 offers value, and technically speaking, this is a very bullish market. Longer-term, this could be a “buy-and-hold” strategy just waiting to happen, but I think that the occasional downward motion may scare some traders out. Because of this, you could add slowly and ride out the volatility that way as it will mitigate some of the danger.
FTSE 100 Video 13.10.17
This article was originally posted on FX Empire
