FTSE 100: The main index must break above this level

The index continues to suffer as blue chips face major blows. Our chartist hunts for upside triggers.

FTSE for Tuesday (FTSE:UKX) 

Covid-19 continues to disrupt normal people’s lives with the FTSE 100  suffering a pretty dreadful Monday. 

In fairness, the drop was kick-started with an opening second 100-point reversal. 

This proved sufficient to ensure both targets given in our previous report were achieved by 8:30am, depositing 289 points in the bank. 

We’re now rather invested in a simple little movement the FTSE enacted at 4pm.

Our most optimistic thoughts planned for the market achieving a rebound towards 5,160 points but somehow or other, the FTSE achieved 5,187, holding the level for a few minutes. 

If this upward surge is a sign of some strength making itself felt, we can calculate movement now above 5,187 should bring an initial (tame) 5,253 points. 

If exceeded, our secondary calculates at a more interesting 5,424 points.

When we review after hours FTSE Futures, we’re not entirely sold on optimism. 

Visually, the greater danger appears to be of weakness below 4,902 bringing reversal to an initial 4,791 points. 

If broken, near-term secondary is at 4,738 points.

At present, the FTSE needs to exceed 5,425 points to break above the immediate March downtrend.

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.