FTSE 100 on course to break above 7,600 again?

Will the City index end a run of poor Friday performance? Our chartist looks at the numbers.

FTSE for Friday - written prior to the market open

It appears Friday wants to be another down day on the FTSE 100 index. If this happens, it will make the third depressing Friday in a row, almost like the market is bored of leadership nonsense, Brexit nonsense and Trump nonsense, too. Of course, it's probably the annual pre-August slump along with the "holiday" monsoon season in Scotland.

The market has certainly broken through the immediate uptrend, flirting provocatively with the red uptrend, but carefully avoiding regaining the trend.

This alone should suggest some sort of slump is ahead. It has resulted in the situation where weakness now below 7,482 should expect some reversal in the near-term down to an initial 7,455 points. If broken, our secondary calculates at 7,395 points.

The visuals suggest, quite strongly, if 7,395 does make an appearance, some sort of rebound should be expected as the market appeared to find this level fascinating for much of June.

It's pretty hard to express any timeframe for 7,395 appearing, thanks to market movements recently tending to be in baby steps. The funny thing though is, if 7,395 were to break for any reason, a further fall to 7,175 looks like it should be quite fast, so perhaps Boris is polishing an acceptance speech which proposes England subjugates Calais to streamline customs movements!

If the drop cycle gets underway, the FTSE will need to exceed 7,535 to cancel immediate drop potentials, giving a relatively tight stop loss against a potential 300-plus-point droop!

What if 7,535 is exceeded?

Apparently we are to expect recovery to an initial 7,551 points. If bettered, secondary is a longer-term 7,602 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.

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.