FTSE 100: How to tell if this bounce is genuine
The blue-chip index reversed yesterday afternoon, and it will have to do this to establish a recovery.
26th July 2019 09:06
by Alistair Strang from interactive investor
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The blue-chip index reversed yesterday afternoon, and it will have to do this to establish a recovery.
FTSE for Friday
Probably the only thing more boring than reading an analysis about the markets is writing one. There's something about Scotland which removes ones tolerance to heat as anything above 20 tends to be regarded as "too hot". As for the FTSE 100 index, it looks ready to wilt a bit more.
The market closed Thursday at 7,500 points, its lunge downward to 7,460 a few hours earlier proving pretty much exactly as expected from our lunchtime report.
If any miracle bounce is to be judged as genuine, the index needs to better 7,533 points as this should apparently trigger some further movement to a modest 7,547 points. If bettered, secondary is at 7,582 points. If triggered, the tightest stop looks like 7,493 points.
We're not convinced as to the recovery potentials, instead suspecting below 7,460 shall prove capable of reversal to an initial 7,400 points.
If broken, secondary calculates at 7,361 points. The tightest stop looks like it's around 7,507 points.
That's it. 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.
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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