FTSE for Friday: cause for concern as FTSE 100 wobbles
While American markets surge amid post election euphoria, nothing it seems can shift the main UK index from its five-month range. Independent analyst Alistair Strang goes hunting for hope in the charts.
8th November 2024 07:12
In a bout of typical behaviour for the UK, on a day when the Bank of England lowered interest rates in a positive movement for business while the US elects a President widely regarded as business friendly, our main market behaves as if there has been a deluge of bad news.
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From a near-term perspective, the FTSE 100 certainly is producing plenty of cause for concern.
Currently, below 8,140 points risks promoting reversal down to an initial 8,112 points with our secondary, if broken, an eventual bottom – hopefully – of 8,049 points.
Visually, there is undoubtedly the potential for a bounce from 8,112 points, but we’re perhaps placing hope before common sense, wondering if the powers behind the market reach over and grab the steering wheel to swing from the path being taken.
If triggered, the tightest stop loss position looks like 8,165 points.
Should a panic change in direction be scheduled, above 8,195 points in needed to promote a useless movement to an initial 8,209 points. It obviously doesn’t escape our sense of idiocy, this suggesting the FTSE need “only” move by 50 points to perhaps trigger a tame 14-point movement. But should 8,209 be exceeded, our near-term secondary is at 8,231 points
Oddly, if we take a step back and ignore near term gain potentials, the Big Picture is actually fairly interesting and produces some more encouraging target levels. Above 8169 points should apparently be capable of provoking recovery to an initial 8282 with our secondary, if beaten, at 8309 points. We quite like this scenario, especially as it allows an incredibly tight stop loss at 8140 points.
Have a good weekend.
Source: Trends and Targets. Past performance is not a guide to future performance.
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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