Yahoo Finance FTSE 100 Price Forecast December 12, 2017, Technical Analysis
The FTSE 100 gapped higher at the open on Monday, and now looks ready to test significant resistance at the 7460 handle. I think given enough time, we will continue to reach towards the 7500 level above, and at this point short-term pullbacks will probably be buying opportunities for those who are willing to look for value. The 7400-level underneath should be support, and therefore I don’t have any interest in shorting this market until we break down below that level. I don’t think we are going to be able to do that in the short term, and as a result I think that we are trying to build up a larger position for a longer-term move. That position is being built up over the longer term, and I think that traders have been adding as we go long. The market will more than likely struggle at the 7500 level, as it is a large, round, psychologically significant number. That’s an area that will attract a lot of attention, and therefore cause the reaction.
That being said, we will probably continue the upside momentum, but pullbacks continue to offer value longer-term. If we were to break down below the 7400 level, I think the 7350-level underneath will be the next target. Based upon the massive W pattern underneath that formed at the 7300 level, I think that the market is ready to continue the longer-term uptrend, and therefore no interest in shorting. If we did breakdown below the 7300 level somehow, at that point I would become very short of what I think is a crumbling market at that point.
FTSE 100 Video 12.12.17
This article was originally posted on FX Empire
