FTSE 100

Short Term FTSE Forecast

Published on 30h November 2017 & amended 12th December 2017

The FTSE 100 is currently working to form wave (2). Our FTSE forecast concludes that this happens in a complex manner like an irregular flat.

This scenario assumes that wave (1) already finished in January 2017 and the FTSE has been correcting since then. An irregular flat is a structure that may reach new highs as part of its subwaves. Therefore we label the June 2017 high as a B-wave. If this is indeed an irregular flat, we would expect a sharp selloff in the coming days ahead. Wave action from November 7th seems to set up exactly this case. It has been an impulsive drop with a subsequent overlapping pattern to the upside.

The FTSE seems also to trace out an irregular flat as the ii°-nd wave of minute degree. It looks near finished as of December 12th. We expect the FTSE to continue its correction to the downside soon.

A potential downside target for wave (2) could be roughly the 6,700-7,000 area. However, the first support and resistance is around 7,100 points. We’ll watch the FTSE closely around that level.

Medium Term FTSE Forecast

Published on 20th October 2017 & amended 12th December 2017

The FTSE 100 has traced out a triangle structure, which probably ended in 2011. It looks similar to many other indices in continental Europe. Our FTSE outlook is bullish. Our analysis sees the index take off to new highs despite potential short term pullbacks. We see these as a “buy the dip” opportunity.

Technical Analysis