FTSE for Friday: still looking good for FTSE 100
After hitting a new high yesterday, could it be the UK market's turn to go on a tear? Independent analyst Alistair Strang examines the likelihood, according to the charts.
24th January 2025 07:33
by Alistair Strang from Trends and Targets
The FTSE 100 exhibits the potential for a massive surprise. We spent a few years moaning about its inability to break above the pre-pandemic market level. The rest of the world headed north while the UK markets continued to snuffle in a gutter, failing to glance upward.
Eventually, in April 2024, the index twitched quite firmly above pre-Covid levels, enthusiastically leaping upward by a relatively small amount but now appears on the edge of making some proper movements.
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From a near(ish)-term perspective, above 8,585 points risks triggering further recovery to an initial 8,643 points with our secondary, if beaten, at an amazing 8,759 points. If triggered, the tightest stop-loss level looks like 8,510 points which, while attractive, almost derails our mention of something truly important.
In this scenario, we can risk presenting a third level target which is difficult to ignore.
Should 8,759 points be exceeded, the UK index enters a zone where it apparently has the ability to play catch-up with the likes of the Dax and Wall Street, gaining by a quite illogical amount. Our third level ambition above 8,759 calculates at an amazing 10,020 points.Â
Our inevitable converse scenario kicks in should the index stumble below our stop-loss level of 8,510 points, as this has the potential to trigger reversals to an initial 8,467 points with our secondary, if broken, at an eventual bottom of 8,410 points along with a hopeful bounce.
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
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