FTSE for Friday: a significant trigger level for FTSE 100
Independent analyst Alistair Strang has run his software and come up with some new targets for the UK's premier index.
14th March 2025 07:48
by Alistair Strang from Trends and Targets
When the FTSE 100 reached an arithmetically important area around 8,780 points, it decided to flutter above and below this level. From our perspective, the index has been busy forming a glass ceiling – or horizontal trend to be accurate.
This creates a point where we shall tend to view any future attempt by the market to close above 8,780 points as a significant trigger, one ideally capable of introducing a surge to an initial 8,920.
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We’ve a little problem with such a target level, given it matches the prior high earlier in March. But closure above 8,920 shall be regarded as important, suggesting the FTSE has entered a Big Picture phase toward the magic sounding 10,000 point level.
It would be true to say with any market, other than the FTSE 100, we’d be pretty confident of such a scenario but the UK index track record doesn’t readily lend itself to large outpourings of confidence. However, given market performance this year, we’re perhaps exhibiting "learned muscle memory" which could be entirely misplaced! In other words, we’re chicken.
From a nearer-term perspective, weakness below 8,514 risks being a little troublesome, provoking a potential trip down to 8,462 points with our secondary, if broken, introducing itself at 8,368 points. If triggered, the tightest stop loss level looks like 8,564 points, wide but fairly civilised given the reversal calculation.
Alternately, our scenario if the UK index intends to behave on Friday allows above 8,582 points to perhaps trigger recovery to an initial 8,650 points. Our secondary is slightly insane, a return to the glass ceiling level with at 8,786 points!
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.
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