What’s next for the FTSE 100?

Written 5th April 2018 23:35

FTSE for Friday (FTSE:UKX)

We started this week with a commentary which suggested caution if believing the doomsayers who’ve been suggesting the index is in trouble. Our analysis revealed 7,217 points was probably going to prove important.

The FTSE (UKX) still has not bettered this but by some miracle, the index appears to be regaining the post Brexit vote uptrend.

While optimism risks being crushed by a set of dodgy US payroll numbers, the US influence on European markets – certainly from a payrolls perspective – appears to be waning.

Though we could not help but wonder at the tentative moves on the US Futures during Thursday evening, suspecting some nerves may be present.

However, FTSE Futures briefly bettered our 7,217 trigger, so perhaps hope is in order.

The immediate situation for the FTSE signals movement above 7,217 should now generate near term growth to a useless 7,235 points.

If bettered, secondary computes at 7,355 points. As always, we’re a tad cautious with the secondary for Friday due to:

a. Expecting another stonking up day on the back of a 160 point Thursday is unlikely.

b. US payrolls could spoil things

c. There is the immediate 2018 downtrend at 7,260 – blue on the chart.

Before we’d take any near term reversal seriously, the index needs to be below 7,071 points as this looks capable of generating 7,031 points.

If broken, secondary calculates at 6,871. In the event of such a movement triggering, stop can probably be at 7,156 points.

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.

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. 

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company’s or index name highlighted in the article.

Source.