FTSE 100: This analyst is in optimistic mood
The cacophony of Brexit has died down and the band has played on, so our chartist studies potentials.
7th February 2020 08:50
by Alistair Strang from Trends and Targets
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The cacophony of Brexit has died down and the band has played on. Our chartist looks at upside potential.
‘The Week The World Didn’t End’ would best describe February’s first few days. Brexit Day came, flags were shuffled, nothing happened, and the band played on. The FTSE 100 appears to have noticed this, now it’s poised for some gains in the days ahead. At least, we think so.
Our favored refrain, ‘if it were a share’ is especially valid at present, recent movements presenting a pretty strong argument in favour of a cycle commencing up to almost 7,900 points.
Of course, there’s a problem thanks to movement of the last week suggesting a stutter around the 7,700 level. Visually, this presents a slight problem, matching the high of mid January, thus perfectly able to cause some hesitation.
However, achieving the 7,700 plateau would also break the downtrend since May 2018, creating a situation where positive market sentiment will find growth hard to restrain.
Near term, FTSE strength exceeding 7,534 points looks capable of a rise to an initial 7,588 points. If bettered, secondary calculates at 7,605 points. If triggered, the tightest stop looks like 7,485 points.
The other side of the coin will be movement below 7,470 points, risking reversal to 7,435 points initially. If broken, secondary is a bottom (hopefully) at 7407 points. If triggered, tightest stop is at 7,521 points.
Our inclination is toward optimism, the prospect of a lazy weekend perhaps fuelling gullibility levels…
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.
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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