FTSE Forecast Today 18/10: Reaches Major Resistance (Chart)

(MENAFN- Daily Forex)

• When I look at the European indices during the trading session on Thursday, the FTSE 100 has caught my attention as it is pressuring a major resistance barrier in the form of 8400.
• It's worth noting that the Retail Sales numbers come out of Great Britain on Friday, but unless they are absolutely horrific, it's very likely that this market will eventually try to break above the level previously mentioned.
• If we can break above the 8400 level, then the market is likely to continue to go much higher and based on the“measured move” of the consolidation area, we could be talking about a move to the 8700 level before it is all said and done.

Technical Analysis

The technical analysis has been sideways and neutral for a while, but when you look at the longer-term charts, it's obvious that the market is ready to go higher, sooner or later. The 200 Day EMA is sitting around the 8100 level, which is an area that has been support for quite some time, therefore I think we've got a situation where a lot of people will be looking at that as the“floor in the market.” That being said, the 50 Day EMA of course is sideways, but I do think it is starting to curl to the upside and with this being said, I think it's probably only a matter of time before it comes into the picture to offer a certain amount of support.

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The fact that we have recently seen the market curl higher suggests that there is a lot of interest in this market, and eventually I think that the exchange in London will be moving right along with the other global indices around the world. All things being equal, the market looks as if it is ready to go higher sooner or later, so I think short-term dips will also attract a certain amount of attention the people are willing to jump into the market and take advantage of“cheap FTSE contracts.”

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