FTSE 100: The big levels to watch
The blue-chip index continues to bewilder, but our chartist adds some clarity to potential movements.
22nd February 2019 08:59
by Alistair Strang from Trends and Targets
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The blue-chip index continues to bewilder, but our chartist adds some clarity to potential movements.
FTSE for FRIDAY (FTSE:UKX)
Sometimes we wish part of the FTSE 100 index would follow our political leaders and break away from the main index. It could call itself "the Whoopsie" and be ignored by the rest of the market. But the media would doubtless focus closely on what it was doing to the detriment of everything else.
As can be correctly assumed, we remain bewildered at the behaviour of the FTSE as the index continues to behave as if it has not factored the future under Brexit into its calculations. As expected, the financial sector (which we feel shall provide the final clue to the markets real direction) is proving hesitant, just like many MP's as news breaks of one of their number being arrested for expense fraud.
At present, the situation with the FTSE appears to be of movement below 7,141 allowing traffic down to 7,105 points. If broken, our secondary calculates at 7,064 points. If triggered, the tightest stop appears to be 7,195 points.
Visually, there is ample reason to expect a bounce at the 7,064 level, if only due to prior lows in February. The real problem comes if the index manages below 7,064 points as it risks breaking this years uptrend, presently at 6,930 and continuing south to 6,885 and below. In fact, this comes dangerously close to the 1,000 point drop we occasionally postulate, when feeling bewildered.
At present, there's a big picture trigger level at 7,278 points. Only with movement above such a point shall be exhibit signs of optimism, this allowing travel to an initial 7,364 points. If bettered, secondary is at 7,489 points but in fairness, the index could easily catapult to 7,750 points on a tidal wave of optimism and flying pigs. If triggered, the tightest stop is ridiculously wide at 7,060 points!
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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