FTSE for Friday: the 10,000-point threshold
Independent analyst Alistair Strang reveals what the charts say might happen next.
7th February 2025 08:57
We wonder how long this market pain will last, especially as from our viewpoint the FTSE 100 is painting a surprising picture from a big-picture stance, one which now paints a future 10,385 as a very possible ambition.
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Overall, we’re forced to regard a distant 10,000+ points as a sane ambition. To be quite clear, such an aspiration would be regarded as viable in North American markets along with substantial parts of Europe. But for the UK, we show a relatively near-term calculation at above 8,768 points apparently triggering gains to an initial 8,843 points with our secondary, if bettered, working out at 8,867 points and some hesitation.
Source: Trends and Targets. Past performance is not a guide to future performance.
These target levels are not particularly ambitious and the tightest stop loss level looks like just 8,646 points.
As usual, our converse scenario is less cheery, allowing movement below 8,645 points to bring a visit to an initial 8,368 points with our secondary, if broken, working out at 8,235 points. Unfortunately, these drop targets make a lot of visual sense, a detail for which we thank the Bank of England.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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