FTSE 100 for Friday: Where the rally might end

by Alistair Strang from Trends and Targets |

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. 

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

get more news and expert articles direct to your inbox
Sign up for a free research account and get the latest news and discussion, and create your own Virtual Portfolio
sponsored articles from our partners