FTSE for Friday: what’s in store for the holiday season?
Independent analyst Alistair Strang shares his view on prospects for the new year.
20th December 2024 09:21
by Alistair Strang from Trends and Targets
The FTSE reacted negatively to the news about UK interest rates, actually managing to exceed the drop on Budget Day at the end of October!
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From an immediate perspective, we're inclined to anticipate further reversals on the market, perhaps even testing the red uptrend since 2023. But, of course, our software is giving a UK-inspired miserable view as below 8,078 points calculate with the potential of travel down to an initial 8,015 points.
This certainly comes close to the red uptrend, but our secondary is a worry, calculating at 7,900 points and the potential for breaking the most recent uptrend, spelling a miserable start to 2025.
Should this trigger, the tightest stop is at 8,125 points.
Source: Trends and Targets. Past performance is not a guide to future performance.
Our scenario, if things intend to go right for the UK index, is that it needs above 8,125 points to hopefully trigger an initial 8,144 points with our secondary, if bettered, at 8,168 points. Despite this being a vaguely attractive points’ gain, it presents a visual issue, making it harder for the index to climb higher...Unless, of course, some index chaos kicks in.
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.
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