FTSE 100: the route to 6,000 on 7 May 2020
Ahead of the long weekend, our chartist looks at what might happen in today's trading session.
7th May 2020 08:48
by Alistair Strang from Trends and Targets
Ahead of the bank holiday weekend, our chartist looks at what might happen during today's trading session.
FTSE for Thursday (FTSE:UKX)
The decision to move the first May Bank Holiday Monday to a Friday, made before Covid-19 became a thing, has produced a trading week for the markets which felt strange.
Essentially, in addition to utterly insane conditions, the FTSE 100 has suffered a week deserving of the term 'demob-happy'.
Thankfully, we managed to notice the looming bank holiday, shuffling our popular FTSE for Friday report forward a day.
It looks like some reversal should be expected on Thursday. Weakness next below 5,839 looks capable of attempting a pretty tame sounding 5,821 points. If broken, secondary is at 5,796 points. Neither ambition points to extreme volatility on this, our last day of the week.
We would be remiss if we did not find something to be really gloomy about and it is the calculation, should 5,796 break.
Apparently 5,690 becomes viable, taking the FTSE into territory where there is a risk of Covid-19 levels of panic volatility.
Visually, the FTSE need only nudge above 5,910 to re-enter the land of sweetness and light, allowing movement to a near term 6,036 with secondary, if bettered, working out at 6,075 points.
Finally, remember three things. We are discussing the FTSE and not out of hours futures. Enjoy the weekend.
Source: Trends and Targets. 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, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.Â
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 or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.Â
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