Today, the FTSE 100 index is up as it bounces from support. On Monday, I said that the FTSE 100 trend had turned bullish and would remain bullish above the July 25 low of 7461. I also said that traders would probably buy the FTSE 100 on a dip to the July 16 high of 7593. The stock index has since then slid to the high and undershot it, but not enough to trigger a trend reversal. Today, it looks like the price will leave the 7461-7593 interval and resume its uptrend, but price action should remain choppy with the Bank of England meeting on deck. I don’t anticipate the BoE to introduce any new measures or changes to their policies with Brexit looming, but if they make any change, I think they will be dovish to not deviate enough from the ECB and the Federal Reserve. If they are indeed dovish, it should support the FTSE 100.
As for the FTSE 100, the trend will remain bullish above 7461, and I still suspect the price will reach its August 2018 high at 7793.Don’t miss a beat! Follow us on Twitter.