FTSE 100 outlook for June, and can Ripple make a splash?
The UK main index grew by just 0.7% last month, impressing no one. Here's what the charts say about June.
4th June 2021 09:06
by Alistair Strang from Trends and Targets
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The UK main index grew by just 0.7% last month, impressing no one. Here's what the charts say about June.
FTSE for Friday & Ripple (again)
For the FTSE 100 (FTSE:UKX), May managed a less than spectacular trading range of just 160 points. It also manages a pretty dull gain from 6,969 points to close the month at 7,022 points.
In percentage terms, the UK index grew by a stonking 0.7%, impressing no-one. At the time of writing, the index is trading around 7,064 points, and we hope the current, mid-term, ruling attraction from 7,185 points shall not be doomed to represent a high point for June. It just wouldn't be fair!
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Near term, FTSE movement exceeding just 7,075 points calculates with a potential gain toward a pretty useful 7,117 points. We're less optimistic with our secondary arithmetic as it works out at 7,157 points. The tightest stop is unpleasantly wide at 7,013 points, the low price of Thursday.
Our alternate scenario if it all goes wrong suggests any weakness continuing below 7,013 risks triggering reversal to an initial 6,982 points. If broken, our secondary is a hopeful bounce level of 6,922 points.
Source: Trends and Targets. Past performance is not a guide to future performance
We've a few clients holding blockchain-based payment system Ripple (XRP), and while we'd prefer to use a UK traffic light system always set at red for it, we're opting to feature it as a headline item once a week.
Ripple has enjoyed a fairly placid week and is presently trading around $1.09 (£0.77). The surprise comes if it manages to move above just $1.10, as apparently we should expect recovery to an initial $1.40.
If bettered, our secondary is a bit more exciting at $1.87. Exceeding this secondary ambition is liable to be a really big deal, allegedly threatening a cycle to commence to $2.50, and some hesitation.
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We'd now have significant concern if the price of Ripple manages to move below $0.70, as we cannot calculate drop targets below such a level.
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.
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