FTSE FOR FRIDAY (FTSE:UKX)
Before looking at near term FTSE (UKX), it’s probably not a daft idea to stare meaningfully at Brent Crude as the product has taken a “stupid pill”. There were quite a few things indicating growth for a while but forces, political or market, seem to be legislating against presently.
When this sort of nonsense occurs, we find the sanest option is to step back and look at the bigger picture. In the case of Brent, the suggestion is the product needs now better $74 to make movement to an initial $83 viable. Secondary, if bettered, comes along at $92.
As for FTSE for Friday, we’ve got some strange numbers which frankly are causing confusion. We suspect market direction upward will prove viable, but only if the DAX wanders above 12,560 points.
As mentioned repeatedly, we were deeply unhappy with some market movement toward the end of January. These movements also infected the DAX but we suspect there was a tiny little dance step which shall prove important, hence the 12,560 thing.
On the basis the FTSE now betters 7,282 points, we feel justified in looking for growth toward 7,328 points initially.
If this number appears familiar, it’s ‘cos we mentioned it last Friday with a warning not to expect it within a single session.
This time, despite a week spent messing around aimlessly, it now appears possible in a single session. Secondary, if exceeded, now calculates at 7,384 points but if the languid pace of movement continues, it could be March before such an ambition makes itself known!
The flop side of all this very vague optimism comes from something we’d worried about on Thursday.
Essentially, the FTSE should not have proven capable of breaking 7,189 without bringing further hysterics.
Unfortunately, the index did manage below to 7,187 – very briefly we admit – and the situation now exists of weakness below 7,187 pointing at reversal to 7,147 initially with secondary, if (when) broken at 7,093 and hopefully some sort of bounce. If triggered, the stop is rather wide at 7,270 points.
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, Shareprice, 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, and 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.