What are the odds of FTSE 100 challenging January high?

FTSE THIS WEEK (FTSE:UKX)

The index remains somewhat reticent of exceeding our 7,217 points mentioned on Friday. Despite the highest achieved being 7,214 points, we’re still fairly hopeful some upward travel is possible, if only to celebrate children returning to prison (school)!

Near term, the FTSE 100 (UKX) needs better than 7,258 points to exceed the downtrend since the start of the year. This is apparently going to prove possible with movement now above 7,217 as a cycle to an initial 7,350 should commence with secondary, if bettered, at 7,510 points.

Visually, there’s a fly in the ointment at the 7,300 level as it appears a glass ceiling is auditioning.

In reality, this is very liable to promote some sort of stumble on the way up, but closure above the glass ceiling will tend to make a challenge of the highs from January a reality.

That’s about the end of the good news as, until the market actually closes above that blue line, it remains in a position where reversal to 6,800 is the primary consideration.

We’d certainly raise an eyebrow or three should the index wither below 7,050 points as this is looking certain to provoke 7,000 points initially. With secondary down at 6,820, reasonably close to our 6,800 calculation.

For now, there’s some hope and when we look at what some shares are doing, it will prove sensible to keep a weather eye on the banks.

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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