FTSE FOR THURSDAY (aka Friday) (FTSE:UKX)
The first of this year’s stockmarket holidays seems to have taken an age to appear, with the market experiencing greater volatility in three months than in the whole of 2017.
In fact, last time so much action was crammed into such a short period was the end of 2015 to early 2016. Or, to be honest, any three-month period in 2008, a year which saw the FTSE retreat from the prior highs of 2007.
We shall cover this aspect in our big picture roundup on Monday evening as surely some commentators will come out from under rocks to announce another market crash is happening! It can be assumed this is a concept on which we are not yet entirely sold and thus, we probably will not mention 5,527 points as a potential bottom.
The last week has been a bit vague, giving us a suspicion the market is simply marching in place prior to the Easter holiday. The near-term situation for the FTSE allegedly is of strength above 7,045 points aiming at near-term growth to 7,078 points.
As always, we are discussing numbers during market open hours only. Our secondary, should 7,078 now be bettered calculates at 7,104 points. If triggered, stop can be at 6,978 points, though to get real it’s possible a stop should be as tight as heck due to the silly fits and starts the index is throwing.
In addition, there’s the significant matter of the FTSE currently residing within a downtrend, making upward movements fail before secondary targets. Or in plain English, we view the ruling drop temptation – still – at 6,800 points.
As a result, now below 6,923 should bring an initial 6,850 with secondary, when broken, at 6,800 points. Stop can be 7,036 points, a bit wide but probably needed as the market is bound to use its entire bandwidth prior to any drop.
Have a good holiday weekend.
Source: interactive investor Past performance is not a guide to future performance
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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