FTSE for Friday: hope merging for FTSE 100
There's always been a reason to kick the UK blue-chip index, it seems, but independent analyst Alistair Strang has identified some good news that could give the index a lift.
22nd November 2024 07:15
It has been a funny old week, Thursday kicking off neatly with a power cut. What we don’t get is how the electrical engineers know to wait an exact time before cutting the power again, ensuring our PC’s which have rebooted, been logged in to everything shut down again. How we laughed.
Strangely, just after we felt safe to actually publish market Futures, the FTSE 100 decided to emulate the electricity supply and kick into life, potentially triggering quite a positive scenario for the next few days.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
Literally, until around 3pm the index had spent every day this week oscillating 50 points above and below the 8,100 level. Whether this is a side-effect of whatever world or political conflict is being used to worry the markets this week, we’re not sure, but as Thursday drew to a close, a white dove of hope emerged above the FTSE, one with some interesting potentials.
Despite the FTSE 100 only exceeding this week's market bandwidth by just 3 points, we’re inclined to hope by the market deciding to close the session in an arguably happy place.
If we’re reading things correctly, above 8,155 points should now trigger a movement to an initial 8,201 points. Should such a level be exceeded, our secondary ambition calculates at an impressive 8,278 points, placing the index in a zone where a longer-term cycle to 8,375 becomes possible. It's a hope which makes a lot of visual sense, maybe even signalling a real Santa Rally this year! If triggered, the tightest stop loss level looks like a fairly reasonable 8,100 points.
Of course, it wouldn’t be Friday without us sneaking in a negative scenario and, in this instance, the suggestion is of weakness now below 8,100 points potentially triggering reversal to an initial 8,060 points with our secondary, if broken, a less likely feeling 7,978 points.
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.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
Editor's Picks