Where next for FTSE 100 as Brexit deal unravels?
16th November 2018 08:41
by Alistair Strang from Trends and Targets
The FTSE spent the first half of November pivoting above and below 7,075 points. Chartist Alistair Strang looks at possible movement as Brexit causes huge uncertainty.
FTSE for FRIDAY (FTSE:UKX)
This is one of these times when we're pretty nervous. The markets appear unable to decide direction convincingly and in the UK, we're blessed with politicians unable to decide anything! The funny thing is...
The FTSE 100 has spent the first couple of weeks of November pivoting above and below 7,075 points. We hate this absurdity, suggesting short from 7,175 or long from 6,975 points.
Closing at 7,038 points on Thursday, the market experienced another volatile session, one which gave pause for thought as a few signals suggested a coming break from the present rangebound state.
Of course, it could simply be market reaction to the plethora of conflicting announcements and analysis regarding Brexit.
Near-term, weakness now below 6,975 suggests some travel to an initial 6,906 points. Secondary, if broken, calculates at 6,868 points.
If triggered, the tightest stop appears to be 7,043 points, giving a pretty balanced risk/reward.
The alternate will be of strength above 7,055 suggesting the potential of travel to 7,089 points. If bettered, secondary calculates at 7,110 points. If triggered, the tightest stop appears to be 7,020 points.
Visually there are ample reasons to anticipate some sort of bounce if the 6,868 level appears but we do have a warning. Unless the FTSE somehow exceeds blue - roughly 7,160 at present - there's still a heck of an argument favouring bottom somewhere around 6,600 eventually.
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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