FTSE 100 Price Forecast – British index pulls back on Tuesday
The FTSE 100 fell rather significantly during the day on Tuesday, reaching towards the 50 SMA on the hourly chart, and of course the 7700 level underneath. That’s an area that has caused a lot of noise in the past, and of course is a large come around, psychologically big figure. The market bouncing from there isn’t much of a surprise, as I think that the market will continue to recognize these large numbers in its importance. This market tends to be very sensitive to everyone hundred points, but recently has been in a bit of a rectangle, with the 7700 level being the “fair value” of the market. So bouncing from there in short, really wasn’t overly surprising.
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I believe that if we can break above the 7770 handle, then the market can go higher, as it would show that the market was not able to reach the lows of consolidation again, and then broke out to the upside. I do believe that longer-term we go higher, but in the meantime it’s a matter of being patient enough to either by on the breakout, or by towards the bottom of the consolidation near the 7660 handle underneath. If we break down below the 7740 level, then the market could unwind even further.