FTSE for Friday: will bank rescues save FTSE 100?
17th March 2023 07:50
by Alistair Strang from Trends and Targets
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It will take a brave trader who keeps large positions open over the weekend. Independent analyst Alistair Strang studies the possible impact this may have on the blue-chip index.
We shall not be surprised if Friday ends with some reversals, if only due to concern over potential bad news breaking over the weekend. While the Swiss Central Bank has “saved” Credit Suisse and First Republic Bank saved by a coalition of major banks, considerable effort is obviously going in to inhibit a domino effect in the banking sector.
However, it will be interesting to see how many traders opt to close positions on Friday rather than risk a wipe-out on Monday, due to a new cause for panic.
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We’ve some doubts about this for Friday as it feels like the FTSE 100 may again experience some recovery.
Closing Thursday at 7,410 points, it need only lurch above 7,460 to hopefully trigger recovery to 7,522 points with secondary, if bettered, a more encouraging 7,584 points. This secondary ambition is quite a big deal, giving the FTSE the impetus to potentially regain the Blue downtrend and point at happy days ahead.
The required stop loss is rather wide, calculating at 7,377 points.
If everything intends to go wrong, below 7,330 points looks catastrophic as this risks triggering reversal to 7,267 points with secondary, if broken, at 7,204 points and a limp bounce, maybe…
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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