What is FTSE 100 Index? Chart Analysis

FTSE 100 Index (FTSE, FTSE 100, Footsie) is one of the biggest and very popular index of London Stock Exchange. This index has been working since 1984, that time base level of it was 1000 and right now trading on the price of 7236. Ftse 100 Index does contain top 100 companies (according to to market capitalisation) of United Kingdom and are listed on the London Stock Exchange.

Almost 80% of market capitalisation of LSE (London Stock Exchange) has depend upon on these top 100 FTSE companies. Means to say that the index does contain a clear picture and chart of whole structure of UK economy,due to ts 80% representation. Every conuntry Index’s are always so much helpful for traders and investors to check about the market structure wthin one single chart and picture rather than checking all top companies charts. 

That’s why so many big traders, investors like to pay attention regularly on the market index’s related to their country or other index’s. Along with this index there are some other index’s those are traded in London Stock Exchange are FTSE 250, FTSE 350. FTSE 250 does also contain the big companies stocks, but they come after the top 100 companies, furthermore FTSE 350 is called as a small cap index also where small stocks are trade.

  • FTSE Market Price History:

According to our chart analysis market is still in a uptrend range, in the year of 2003 we had seen a great improvement and growth from 3300 to 6800 range. But the year of 2008-2009 was not that much good for buyers, and price was declined to the area of almost 3500. Its important to understand that if we are not able to see any new lower low after a lower low then a uptrend situation can arise and the same thing happened in FTSE also. Since mid of 2009 market has made a uptrend and working well in a higher high and higher low sequence.

Furthermore more detail about the price and chart is given below, lets take a look that how can market perform this year, and what kind of trading possibilities would arise in the FTSE 100 this year in 2019. 

  • How to trade FTSE 100 Index?

This is a monthly chart of FTSE 100 index has been shown below according to the market condition its still making a higher high and higher low sequence and every time when market is going down its not making any stable direction toward the downtrend direction of the market. It means still there are chances that more strength can come in the index. Keep in mind always that whenever a uptrend or downtrend sign is coming on the chart, it should be get stable first, without any stability it will lose the grip very soon and once again the past trend will resume once again as happened in the index so many time no stability in the price of sell at all which giving indication that strength is up.

Other important thing would be to understand the role of big players, because those are the people who move the market, all of the financial markets aspects move up and down according to the decision of big player. So that’s why we should always try to learn that how to follow the big player on chart. Whenever a market is going up so many time big players try to make a fake sign of sell as shown in the chart above, big players does only participate in the market to make money, they never lose any money here.

Trading with big player or moving our money along with the big player footprints is one of the best way to make money in any financial market. There is a simple rule that big players do things mostly opposite of our mind, they like to play with retailor investor’s mind or psychology. The chart is looking very simple above but its so much hard to do trade in real, This is a clear example that how big player buy and sell in market, how they create fake sell signs during uptrend which become an trap for most of normal people or retailor traders later.

  •  FTSE 100 Future Price Technical Analysis & Prediction 2019:

According to our trading analysis we think that from the current price 7236 market would start to go up and it can retest the level of next resistance area which is a range of 7600 to almost 7900 level. Still there is a chance that market can go down from here and a downtrend can be seen over there, but on the other hand this can be a false sell sign once again and we may see uptrend bull run once again. 

For a buy position we should atleast wait for the breakout and a good support zone above the breakout which will confirm the buy sign for us. This type of pattern actually indicate the sell market, furthermore if we see that strength come’s in the index, market will make a new record this year and will make a new time high area on chart. But if we see that selling market is getting a strong grip then we may see a big decline this year in FTSE 100 which can reduce the price of index from 6000 to 5500. 

We hope you liked the content if you have further questions just contact us through the contact area section or you can just put your comments below in the comment section. 

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