The FTSE (FTSE:UKX)
Usually, the festive period is a “feet up” time with stockmarkets making pretend movements, designed to conceal prices actually being marched on the spot. Gleefully, we take full advantage of Scotland enjoying the 1st and 2nd off, following New Year. Oops moment!
Worse actually, half the team are still on holiday and when faced with 21 targets met amongst shares on our first day back, it proved quite a shock to the system. The “problem” of course is the FTSE 100 (UKX).
We’d spent December banging on about the need for the FTSE to actually close above 7,563. The index achieved this ambition at Xmas eve, cheerfully blasting skyward to 7,700 in the period since.
For some reason, this very real instance of “higher highs” always provokes some flamboyant behaviour but amongst FTSE 100 shares, there have been some truly wonderful breaks upward.
Except, of course, the retail banks.
The situation now is fairly simple. In the event of the FTSE bettering 7,715 points anytime soon, it should commence a cycle toward 7,840 points or so. Secondary, should such a target be exceeded, wanders along at 7,896 points.
To spoil the party, the index requires to break red on the chart, currently lurking at 7,540 points. Such a break computes with 7,470 initially with secondary, if broken, a fairly traumatic 7,320.
This, of course, would turn December’s dance steps into a “did that really happen” scenario…
Happy New Year and our very best wishes for the future. And futures.
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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