FTSE 100 for Friday: Where the rally might end

The election result has given stocks a boost. Our chartist sees where they can go from here.

It's worth taking an updated look at the FTSE 100 medium term, specifically the index during opening hours and not FTSE Futures.

Above 7,309 now suggests traffic in the direction of 7,384 points. If exceeded, secondary is a more enlightened 7,410 points. Visually, there are plenty of reasons to anticipate a stumble around the 7,400 level as we suspect only closure above 7,410 shall prove capable of igniting a longer term rally toward the 7,650 level.

Of course, as always there's a flip side to the argument. Reversal below 7,193 could easily provoke travel down to an initial 7,036 points. If broken, secondary is at 6,936 and hopefully some sort of rebound.

While writing this headline section, the media announced the "Exit Poll" and market futures reacted positively. As a result, we shall not be surprised to see our upward targets around the 7,400 level achieved - if the poll turns out to be correct.

(article written late Thursday night, 12th December)

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.