FTSE 100 Price Forecast January 18, 2018, Technical Analysis

Christopher Lewis
Updated
The FTSE 100 as you can see went back and forth during the trading session on Wednesday, showing signs of volatility yet again. However, I think that by showing a bit of patience you can benefit from the longer-term move.

The FTSE 100 as you can see has broken down over the last couple of days, as we sliced through the uptrend line. That being the case, I think that we will continue to see a little bit of a malaise when it comes to the FTSE 100, but longer-term I am looking for buying opportunities. The 7700-level underneath is important, but it would not surprise me if we break down below here and reach towards the more significant support level at the 7600 level. I do like buying dips, but I think you can be patient and wait for a longer-term candle to start taking advantage of.

Ultimately, I think we go to the 7800 level, and then eventually the 8000 level, but it is going to be difficult to hang on to the trade if you jump in with both feet, so I’m looking for a bounce, essentially a “higher high” on the hourly chart, or a supportive daily candle to start buying, but I would only buy roughly 1/3 of my normal trading position. After that, every time we make a fresh, new high on the hourly chart, I am going to add another one third to the position. Ultimately, I do plan on a “buy-and-hold” situation, reaching towards the previously mentioned 1000 level.

If you see the market break down below the 70 60 level, the market will probably fall apart completely. Nonetheless, I don’t think that’s going to happen anytime soon, so look for a buying opportunity going forward.

FTSE 100 Video 18.01.18

This article was originally posted on FX Empire

More From FXEMPIRE: