FTSE this week (FTSE:UKX)
The market at present worries us quite a lot. Many shares are just ‘hanging’, neither showing convincing up nor down moves. As mentioned previously, several commodities are presenting similar hesitation.
Generally, this nonsense presages a strong, new, well-defined trend. As for direction, “Feelin’ lucky, Punk?” is a phrase which springs to mind.
The underlying forces against the FTSE 100 (UKX) continue to be upward. The index requires to break the red line on the chart, currently just below 6,900, to indicate running shoes, as 6,600 could follow rather fast.
And then, we’d need to resort to writing some really miserable drop potentials as it would appear politicians have succeeded beyond their wildest dreams in trashing the market.
However, near-term it now appears weakness continuing below 7,420 should bring 7,375 to the fore. Secondary is around 7,310 points where the market almost must bounce.
The prospects of a break below such a point indicate a pretty poor 7,150 and potential bounce against the uptrend since 2016 by the end of this year.
The market closed its first full November week at 7,434 points and need only better 7,482 points to exceed the immediate downtrend and, in doing so, halt the rot.
Therefore, moves above 7,482 allow us to speculate on coming growth toward 7,575 points with secondary, if bettered, at around 7,640 points. The crazy thing about this scenario, if triggered, is it permits a really tight stop at 7,475 points.
We live in interesting times.
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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