FTSE for Friday: record high is within reach again, but when will it happen?
3rd February 2023 07:16
by Alistair Strang from Trends and Targets
On Thursday, the UK market rallied to its highest level in over two weeks and to within one good session of a record high. Independent analyst Alistair Strang shares his latest forecasts for the blue-chip index.
The FTSE 100 appears to have taken a stupid pill. Since 19 January, when the index closed at 7,747 points, it has made utterly pathetic daily movements, the London market closing price wavering by a maximum of 40 points across 10 sessions.
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It has been far from exciting, trying to make sense out of what’s going on but, thankfully, movements on Thursday tend to suggest the FTSE is making another attempt to become airborne.
Above 7,837 points near-term apparently brings the potential of gains to an initial 7,875 points with our secondary, if exceeded, working out at 7,913 points. This secondary is quite a big deal, affording the possibility of allowing London to close above the historical all time high of 7,903 points back in 2018.
From our perspective, this is a really big deal, effectively confirming 8,240 shall become a valid ambition as “top” on the current cycle.
Source: Trends and Targets. Past performance is not a guide to future performance.
Our alternate Captain Calamity perspective demands the FTSE slither below 7,760 points to provoke reversal to 7,684 points with secondary, if broken, at 7,620 points.
Neither reversal prospect is particularly terrifying, despite breaking below an immediate Red uptrend. For now, we’re fairly hopeful.
Have a good weekend.
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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