We’re probably not the only folk who’ve noted the FTSE 100 (UKX) has been as boring as heck for the last few weeks. Eventually, the penny dropped. A flat trend has developed at 7,520, with roughly plus or minus 40-point range.
In other words, if the market currently is above 7,520, opening a short with a stop above 7,560 makes sense. Alternately, if it’s below 7,520, going long with a stop below 7,485 should work. In either instance, the target should be 7,520 points.
How long will this state of affairs last?
If we view October during the last few years, generally this weird period falls apart by the end of the month with some direction being shown. It’s interesting to note when the trend breaks, any initial direction is liable to prove not long lasting.
Given the FTSE actually has quite a strong long-term upward pressure currently, this somewhat dodgy logic implies the market might drop a few hundred points, but nothing worth panicking about unless 7,300 breaks. Equally, the FTSE could opt to break upwards, perhaps to around 7,680 points or so.
Greatland Gold (LSE:GGP)
We’ve received a few emails about Greatland Gold (GGP), presumably due to this month’s sessions proving incredibly encouraging. Unfortunately, we’ve a small problem with the price rises (thus far) as our target level calculates at 2.81p.
Unfortunately, rises appear stalling at 2.5p, but anything now above 2.56p should prove capable of 2.81p eventually.
Visually, this is liable to be quite a big deal, signalling a secondary of 3.5p – or even 5.6p if turbo charged with positive news.
As for trouble, it needs to break the red line on the chart below at a useless 0.6p to indicate panic. To be fair though, when we break it down to minute by minute shuffles, even below 1.6p gives ample excuse for severe concern. (Perhaps indicating Todd Hoffman is giving them advice… – a GoldRush joke)
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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