FTSE for Friday (FTSE:UKX)
Last night’s commentary against Sirius Minerals (SXX) unintentionally described a problem being faced by wider markets. One heck of a lot of “things”, from Brent crude to gold to the banks have broken trend, then messed around doing very little.
We’ve harboured a suspicion the FTSE 100 (UKX) intends to continue growth, rather suspecting the drop experienced on the 9th was probably a bit fake, one of these ridiculous things where something needs go down before it can go up.
Our inclination is not to treat any drop seriously unless it manages below 7,450 or so, this allowing weakness toward 7,400 initially with secondary, if broken, at 7,310 points.
One reason why we rather distrust Thursday’s droop was reflected across many shares in the FTSE 100, where they experienced a synchronised upward spike between noon and 2pm.
We often refer to mystery spikes being used to generate “fake” price moves with this particular series proving quite remarkable in their effect.
Should the FTSE manage above 7,520, we’re looking for near-term growth toward 7,534 points with secondary, if bettered, a more useful 7,553 points.
Perhaps more importantly, this should serve to place the index in a good position for continued upward travel next week.
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.
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