FTSE 100 Price Forecast December 26, 2017, Technical Analysis

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US, China agree to slash tariffs for 90 days

The FTSE 100 was very choppy during the trading session on Friday, but quite frankly there was no volume, so this should not be much of a surprise. · FX Empire

Christopher Lewis

Updated Fri, Dec 22, 2017, 10:48 PM

The FTSE 100 initially tried to rally during the day on Friday but found enough exhaustion and resistance above the 7600 level to turn things around and break down. Ultimately, this is a market that continues to consolidate and an area that obviously means quite a bit, but if we can break above the top of the range for the session, I think that we would continue to go much higher, perhaps reaching towards the 7700-level next, and then the 7800 level after that. The overall uptrend continues to be a feature of this market, perhaps because people are starting to come to the reality that the United Kingdom is not collapsing. Just because they are leaving the European Union does not mean that British firms will never sell another item. The British pound of course is historically cheap, and that helps exports as well.

Market participants will continue to look at dips as value, but I think volume is going to be an issue for the next several sessions, so I would not read too much into the price action until after New Year’s Day. Between now and then, if you plan on being long of the market, which of course I do, then adding on dips might be the best way to go, but I would keep my position size small until we get a more stable and more average liquidity in the marketplace. Once that happens, I fully anticipate that we are going to continue to go much higher. Selling isn’t a thought currently, I believe that the uptrend continues.