FTSE 100: A key trigger level to keep an eye on

The index has done little in recent sessions, but our chartist thinks we could see action soon.

FTSE for FRIDAY (FTSE:UKX) 

A week with a FTSE 100 being underwhelmed by UK political decline appears to be finally responding in true Halloween fashion - scary but not really!

The market has spent the last five sessions flirting with the 7,330 level for some reason. Now, it feels like some reversal is almost upon us and oddly, the key trigger level looks like 7,234 points.

We cannot understand why this has happened, but the situation presently appears to suggest only if the index moves more than 100 points from its previous parking level should we believe more reversal is upon us.

The market closed Thursday at 7,248 points. Now below 7,230 and we expect reversal to an initial 7,211 points. If broken, secondary calculates at 7,183 points. And if triggered, the tightest stop appears to be quite reasonable at 7,272 points.

The alternate scenario appears to be at 7,281 as movement above this trigger is supposed to be capable of a truly unimpressive 7,294 points.

If bettered, our secondary calculation comes in at 7,317 points. If triggered, the tightest stop looks like 7,245 points.

For light relief, we've shown some bigger picture targets, suggesting target levels if "it all goes wrong - or right".

To be blunt, unless the FTSE experiences a miracle and starts trading above the aforementioned 7,330's again, it's now trading in a region with a bottom at 6,594 points eventually.

If it were a share, we'd already assume that's where the price intends to head. Amazingly, it would suggest a return to the FTSE level the year started with, along with a strong hint we forget 2019 even happened.
Have a good weekend, it's time for Austin, Texas and Formula 1, hopefully the UK driver Hamilton winning his sixth world title. (Though everyone knows it's really his seventh)

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.