Where will the FTSE end this week?

Written 8 June – 00:22

FTSE for Friday (FTSE:UKX)

When the London exchange managed to sleep in for an extra hour on Thursday morning, we’d hoped to see the market essentially give their intentions away with some “surprise” movements. Instead, it experienced a fairly humdrum session with Friday appearing fairly important.

The strange thing was, despite the market opening up at 7,757 points, reversals in the next 15 minutes tended to indicate the market was heading to a bottom of 7,665 points.

An ambition down at such a point was not terribly alarming though as the day progressed it appeared some efforts were made to avoid this drop potential.

It’s probably no surprise we didn’t trust ’em and now, we suspect the FTSE (UKX) shall entertain 7,665 pretty early on the session during Friday.

Key, obviously, is whether the index both achieves this level, more importantly bouncing from it!

Should our suspicion prove correct, any bounce exceeding 7,686 should prove capable of continuing to 7,710 points. And should 7,710 be bettered, we can calculate a secondary at 7,754 points.

It’s obviously fascinating, speculating on a bottom not yet achieved, along with a bounce which hasn’t happened. But was if 7,660 breaks? In such a scenario, weakness to 7,638 looks viable. If broken, the tea leaves claim a secondary exists at 7,590.

Source: interactive investor          Past performance is not a guide to future performance

FTSE closed at 7,704 points. Total value traded through LSE was: £ 8,021,682,768.

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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