FTSE 100: forecast for Friday 29 May 2020
Our chartist sees where the index could go from both a near-term and big picture perspective.
29th May 2020 08:37
by Alistair Strang from Trends and Targets
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Our chartist sees where the index could go from both a near-term and big picture perspective.
FTSE for FRIDAY (FTSE:UKX)
If we chose to follow logic and take an optimistic viewpoint, the FTSE 100 is supposed to experience some gains, both from a near-term viewpoint and also, from a bigger picture viewpoint.
As a result, if we follow the big picture, apparently the UK main market is on track for recovery to 6,750 as a fairly major point of interest.
If bettered, 7,350 strikes us as a fairly major secondary target, and where some volatility appears possible.
While this all sounds fabulous, it's worth remembering the FTSE started this year at 7,600 points.
Even the day when Covid-19 started to hit home on 24 Feb saw the index open at 7,400 points.
As a result, even if our ambitious secondary calculation proves correct at 7,350, the UK index will still not be "out of the woods" and heading toward the land of higher highs.
This creates a situation where, if something goes wrong, the market could experience very sharp and fast reversals.
From a near-term perspective, apparently movement next above 6,234 points should make a lunge toward an initially useless 6,250 points. If exceeded, secondary calculates at a pretty solid looking 6,353 points.
Unusually, we can warn to expect some hesitation around the 6,280 level, if the climb triggers near-term!
Near-term reversals risk proving serious if the market finds sufficient excuse to drift below 5,900 points.
Movement such as this risks severe consequences and allows a drop down to an initial 5,550 points with secondary, when broken, at 5,260 points.
This scenario appears visually unlikely.
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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