FTSE 100: The danger signals to watch for
2nd November 2018 08:29
by Alistair Strang from Trends and Targets
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It has probably not escaped anyone's notice that the markets have been all over the place recently. Technical analyst Alistair Strang has the new numbers to follow.
FTSE for Friday (FTSE:UKX)
Looking at the FTSE 100's near-term prospects, it closed Thursday at 7,114 points, despite describing a new low for the day in the closing minute. The miracle bounce from bottom bothers us a little, now suggesting weakness below 7,081 points should trigger some reversals to an initial 7,049 points. If broken, secondary is at 7,010 points.
Surprisingly, the underlying pressure on the FTSE at present is currently upward with above 7,163 points apparently promising travel to an utterly useless near term 7,178 points. If exceeded, secondary is a more interesting 7,204 points.
It has probably not escaped anyone's notice that the markets have been all over the place for the most recent three weeks. If our foregoing drop scenario triggers, the tightest stop is painful with 7,163 points.
Equally, if our upward scenario triggers, the tightest stop appears to be 7,090 points. This problem occurs, thanks to the market habitually using wide ranges before movements to conceal the reality of not much happening.
From a bigger picture perspective, there are quite a few dangerous signals, all mostly expecting the market to bottom somewhere in the 6,600's eventually, despite any near-term positive actions.
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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