FTSE for Friday: a clue that FTSE 100 could hit 8,800
It's been moving mostly sideways for much of the summer, but there's reason to be positive about the UK index, according to independent analyst Alistair Strang's charts.
13th September 2024 07:33
by Alistair Strang from Trends and Targets
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Projecting market direction sometimes feels like publicising Aura Borealis or meteor sighting potentials, an exercise which often leads to disappointment. Thankfully, our track record on the FTSE 100 is substantially better than those who forecast lights in the sky!
Now indoors, with the heating on, glancing at the FTSE is bringing similar levels of frustration to those experienced when trying to spot the Northern Lights.
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We have several underlying reasons to suspect FTSE 100 growth is set to continue. Something quite curious is going on between the UK and Australia as both markets appear to be copying the other. Broadly speaking, there’s a strong scenario presenting 8,800 points as the real attraction for each index - Australia showing some fairly immediate positive potentials with higher highs whereas the FTSE is proving a bit lethargic.
In the event the FTSE opts to follow the expected behaviour of Australia, above 8,290 points calculates with the potential of a lift to an initial 8,332 points with our secondary, if exceeded, working out at an impressive 8,402 points. If triggered, we suggest a stop loss level at around 8,250 points.
We’re obviously not anticipating either the UK or Oz index making the leap to the 8,800 level overnight, quite the converse, but instead we regard this as a longer-term ambition.
If things intend to go wrong, below 8,202 points looks like a trigger level as it risks promoting reversal down to an initial 8,144 points with our secondary, if broken, calculating at a less likely 8,090 points. We shall not be concerned if the 8,144 level is breached, suspected the index shall bounce before the 8,090 level.
Have a good 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.
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