Created 11/01/2018 at 22:26 FTSE for Friday (FTSE:UKX)
So far this year, our world famous FTSE (UKX) for Friday freebie has experienced a 100% success rate. Which isn’t saying a lot, given this is our 2nd Friday! The reverse limbo dance the markets play continues to fascinate with early signs being Friday 12th should prove an up day on the market.
It appears bettering 7,770 shall prove crucial as this apparently should provoke growth toward 7,793 points. We’ve a major question mark over the secondary, should 7,793 be exceeded, as it comes along at 7,840 points, an area where we’d expect some trauma to intrude.
Of course, the “trauma” issue is proving a problem against the US markets as the Dow seems determined to ignore conventional protocols in its never ending trudge uphill. Experience tends to suggest some sort of excuse shall be found to introduce volatility but, when reviewing the usual culprits – the banking sector – aside from Barclays (BARC) there seems a degree of determination for upward growth.
Please do remember, we’re discussing the FTSE above, during trading hours, and not FTSE after hours futures.
We’re almost resigned to using charts to spot reversal points. Currently, the FTSE indicates weakness below 7,330 points should bring the index back to 7,690 initially with secondary, if broken, at 7,665 points.
However, there seems little doubt the FTSE is starting exhibit similar runaway train potentials – as being shown in the USA – with the result spotting “proper” reversal levels risks proving a naive concept, for now!
We’ve spent the week extrapolating target levels against the Dow Jones, based entirely on analysis against individual shares.
Whilst the majority of target levels now are proving correct, the bugbear proves to be the timeframe element as we not only need prices to move to target but ideally, all do it within an immediate time period.
Which, realistically, will never happen! About the only thing we feel safe proposing is, should Goldman Sachs reach the $290 level, shorting the Dow will probably make a lot of sense. But remember to cross your fingers too!
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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