FTSE for Friday: do this and the FTSE 100 could hit 8,000
3rd September 2021 07:47
by Alistair Strang from Trends and Targets
A trigger level for the FTSE 100 to surge by 800 points is not a massive leap, believes independent analyst Alistair Strang.
We often advocate the benefits of stepping back and taking a look at the big picture. And there’s a potential downtrend I’ve been ignoring, but now there’s a vague chance of it coming into play.
At present, the FTSE 100 needs to exceed 7,380 points to surpass this trend line. Despite assigning the FTSE level, pre-pandemic drop, of 7,550 as the point above which things may speed up substantially, we’re inclined to go with the visuals and hope that 7,380 shall provide a reasonable trigger level for fast future acceleration.
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In fact, we can even tighten down on that number, thanks to movements since the pandemic low of March last year. From a Big Picture perspective, above 7,225 points is supposed to bring a visit to 7,289 points. Should the FTSE somehow manage to exceed 7,289 points, our Big Picture secondary comes into play at 8,093 points.
In other words, we’re neither comfortable suggesting the pre-pandemic high as a trigger, nor a break above the Blue downtrend. Instead, we should be looking for any immediate potential on the stock market to attain 7,289 points. Given the FTSE is trading around 7,160 at time of writing, it’s surely not a massive leap to watch for.
Source: Trends and Targets. Past performance is not a guide to future performance.
Near term (and remember the above), the FTSE allegedly needs to trade above 7,184 points to trigger near term movement to 7,226 points. If bettered, our secondary target calculates at 7,302 points, an ambition we do not anticipate happening in the same day, given the glacial pace of the markets at present.
However, this secondary is liable to prove quite a big deal thanks to the target infringing in “Big Picture” territory, hopefully providing a successful pointer to the future.
Our alternate scenario triggers if the FTSE manages below 7,128 points, as reversal to an initial 7,111 looks possible. If broken, our secondary calculates at 7,075 points and hopefully a proper bounce.
For now, we remain optimistic.
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.
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