FTSE 100 Forecast Today - 17/10: Buyers On Dips (Chart)
Date
10/17/2024 11:33:03 AM
(MENAFN- Daily Forex)
In my daily analysis of the European indices, the FTSE 100 has caught my attention as it has been so strong. Part of this might have been due to the fact that CPI came in at 1.7% year-over-year, lower than the expected 1.9% by the market. What I suspect this means is that people are going to take the ball and run with it, meaning that they are looking to take advantage of the bank of England and its monetary policy possibly loosening, or at the very least, slowing down.
Furthermore, the CPI numbers suggest that inflation is starting to drop, and therefore it should help the British consumer. We get the Retail Sales numbers on Friday coming out of the United Kingdom, so that will also catch a certain amount of attention as well. Because of this, I think that people believe that British companies may be in a better situation. If that's going to be the case, then it makes a certain amount of sense that British corporations continue to benefit from better earnings.
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Looking at the technical analysis, although we have been fairly neutral for a while, the reality is that it looks like we are trying to build pressure to the upside. While the 50 Day EMA is sideways and suggesting a bit of neutrality, the 200 Day EMA is reaching toward the bottom of the overall consolidation area, which is found at the 8100 level. If we can break above the 8400 level, then the market is likely to continue to go higher, reaching toward the 8500 level, but the so-called“measured move” suggest that we could go looking to the 8700 level.
Short-term pullbacks should continue to be a certain amount of value just waiting to happen, and as long as we can stay above the 8100 level, the market is likely to continue to see a lot of value hunters are willing to step in and pick up the stock market every time it drops at this juncture. I have no interest whatsoever in trying to short this market currently.
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