FTSE 100: was yesterday the bottom of the market?

by Alistair Strang from Trends and Targets |

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After a big decline in share prices on Thursday, our chartist looks for clues to future performance.

FTSE for Friday & Twitter too (FTSE:UKX) 

With the world reeling in shock, due to the Twitter (NYSE:TWTR) service being "down", we're inclined to expect the worst for Friday as Twitter’s importance cannot be overstated. 

The organisation’s share price is looking interesting, with $51.5 looking possible as a pretty major point of interest next. 

If bettered, secondary calculates at $58.5 and should the share price ever manage above such a level, price movements risk becoming irrational as we cannot calculate beyond such a level presently. 

For the long-term, "irrational" is a good thing.

Source: Trends and Targets      Past performance is not a guide to future performance

FTSE for Friday

As for the FTSE 100, it feels like Friday faces some further reversals due to the point at which the UK market closed on Thursday. 

The immediate scenario is fairly straightforward, as weakness next below 5,785 points risks promoting reversal to an initial 5,689 points with secondary, if broken, at a bottom around 5,604 points. 

We would hope for a proper rebound, should the secondary make an appearance.

If this reversal scenario triggers, the tightest stop looks like 5,835 points.

Alternately, above 5,843 (the market closed at 5,828) calculates as apparently capable of 5,870 points. 

If exceeded, secondary works out at 5,882 points. 

While these ambitions may look tame, the important detail is worth remembering is above 5,882 implies bottom is "in" on the current cycle and further gains may be hoped for.

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, Shareprice, 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.

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