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.

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