FTSE 100 still on track for record high

FTSE for the week (FTSE:UKX)

Despite last week ending with a pretty rubbish Friday, a fair amount of optimism appears probable for the week ahead given the point the index closed.

The funny thing, for the first half of this year, there was a near 80% chance of Mondays being a down day on the FTSE 100 (UKX). More recently, the opposite has been true and better still, it appears misery will prove difficult to invoke (cue: any politician).

In the coming week, it appears we should view movement now above 7,530 as provoking some growth toward 7,625 points initially, perhaps even 7,675 points.

From the level the first week of October closed, realistically this growth cycle is already enabled and the tightest drop should be around 7,455 points.

However, if we resort to that old mumbo jumbo trick of just drawing a straight line, 7,350 remains the sensible point we’d need to witness the market below before losing confidence in coming growth to new all-time highs for the FTSE 100.

So, what happens if 7,350 somehow breaks and we lose all confidence for October?

Initially, weakness toward 7,203 makes a lot of sense. Secondary is now at 6,990 points. The better news is that this forms one of these drop potentials where a seriously tight stop is advised, perhaps around 7,375 points.

The underlying upward force currently is impressive and only below the 7200 level could we suggest the force is not strong with this one.

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. 

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