FTSE for Friday: can FTSE 100 hit 8,200 for first time?
With the blue-chip index less than 30 points from a record high, independent analyst Alistair Strang runs through the possible scenarios ahead of the long weekend.
3rd May 2024 07:37
by Alistair Strang from Trends and Targets
Share on
The FTSE 100 has finally emerged from the long shadow cast by the pre-pandemic highs, so we should be able to relegate the crazy years of lockdowns to history and march onward into a bright future.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
As the chart below highlights, the FTSE has finally started to paint a series of new highs, so we are fairly excited as it shall be a pleasant change to experience some positive results. We’ve noticed, among various sectors, it’s going to be hard to restrain enthusiasm, so perhaps it will be wise to research those shares with solid fundamentals which are languishing below their pre-pandemic levels. It’s very probably those market components shall be the ones moving fastest in the months ahead.
Source: Trends and Targets. Past performance is not a guide to future performance.
With regard the FTSE for Friday, firstly, the Big Picture now claims a long-term attraction above 8,600 is exerting influence on the UK market. As a result, we’re inclined to review near-term gain potentials.
A reasonable scenario now calculates with the potential of movement above 8,200 bringing a visit to an initial 8,224 points with secondary, if exceeded, at 8,297 points. Given the parsimonious rate of movements recently, it’s likely this sort of secondary may not appear until next week. If triggered, our tightest stop looks like 8,145 points.
Our converse scenario examines the potentials if the market trips below 8,145. This looks capable of triggering reversal to an initial 8,125 with our secondary, if broken, at 8,110 and a very possible rebound.
Have a good long weekend. We’ll be back on Tuesday.
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.