FTSE for Friday: unconvinced by market rally
After a strong session Thursday, the FTSE 100 is less than 100 points from a record high. Independent analyst Alistair Strang reveals what his software says about the possible next move.
18th October 2024 07:14
by Alistair Strang from Trends and Targets
No matter how intransigent the markets feel, sometimes the unexpected can happen. Unfortunately, we’re not convinced what happened on Thursday represented a reasonable excuse for optimism.
The problem was the FTSE 100 closed the day at 8,385.13 points. When we throw our trend software at the Blue line on the chart, the market was required to close above 8,386.875 points to secure a place in a zone where some proper recovery is probable.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
The difference between the two ambitions is obviously minimal, but we get nervous when the markets expend effort in preventing a price moving upward. This has, for instance, created a situation for Friday where the visuals imply it should be a day of gains for the FTSE but we smell a rat.
Currently, below 8,350 risks triggering some reversals to an initial 8,316 points with our secondary, if broken, a hopeful bottom of 8,248 points. If triggered, the tightest stop looks like 8,396 points.
If things intend to provide a happy day, above 8,396 calculates with the potential of a lift to 8,412 points with our secondary, if beaten, at 8,494 and complete change of circumstances for the longer term.
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.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.