FTSE for Friday: useful signs from FTSE 100 plus thoughts on AIM
Is it possible the blue-chip index is about to make a break out of its five-month range stick? Independent analyst Alistair Strang consults his charts for clues.
25th October 2024 07:50
by Alistair Strang from Trends and Targets
The only thing stranger than living here in Argyll is watching the UK markets. AIM in particular has, since 2022, carefully proven not to be mimicking lemmings. Instead, it has painted a picture where the lemmings have carefully walked downhill and now spend their time knocking their heads against the cliff.
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The situation for AIM now requires the index to exceed 755 to provoke (hopefully) a visit to an initial 770 with our secondary, if bettered, at 817 points.
Visually, it appears more likely AIM shall continue heading downhill as movement below 720 next looks capable of visiting an initial 700 and hopefully a real bounce. Things certainly get dangerous if the index manages to close below 700 points as our secondary target of 664 becomes possible, along with trapping the market in a muddy place.
Source: Trends and Targets. Past performance is not a guide to future performance.
As for the FTSE 100, the index is showing slight signs of becoming useful, despite having trapped itself in a trench since the start of September.
It is currently the case where above 8,352 should next promote recovery to an initial 8,397 points with our secondary, if beaten, a quite amazing 8,473 points, taking the index out of the zone in which  it currently languishes. If triggered, the tightest stop loss is a bit painful at 8,305 points.
If things intend to go wrong, below 8,250 looks troubling, calculating with the potential of reversal to an initial 8,193 points with our secondary, if broken, at 8,114 points.
In summary, Friday looks boring but as one of our favourite Grand Prix is on this weekend (Mexico), there’s almost something to look forward to.
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.
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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