FTSE 100: What the charts say about prospects in December
30th November 2018 08:32
by Alistair Strang from Trends and Targets
It's been a grotty month and the jury is still out on whether we'll see the traditional Santa rally. Technical analyst Alistair Strang tells us what he thinks.
FTSE for Friday (FTSE:UKX)
November has proven pretty grotty on the FTSE 100, the index displaying a 300-point range in total which often proved untradeable. As the month draws to a close, the last few days started to give some positive signs for December.
Whether this expands into a fabled 'Santa rally' looks pretty inconclusive as this point. However, we shall raise an eyebrow if the index manages above 7,080 points anytime soon.
Apparently, growth such as this should bring some continued recovery to an initial 7,135 points. If exceeded, secondary calculates at 7,215 points. If triggered, stop can reside at 7,018 points at very tightest.
It is fairly noteworthy that our secondary target coincides with the ruling downtrend since August, almost promising a rebound should it occur in the next trading week.
What happens if 7,018 breaks?
It's slightly boring but a trip down to 7,010 makes a lot of sense. The problem with this movement comes, should 7,010 break. In such an instance, our secondary computes at 6,959 points, perhaps even 6,912 points if things are really going wrong.
Visually, there are ample reasons to hope for a solid bounce, should 6,912 make an appearance.
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.
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 to buy or sell any financial instrument or product, or to adopt any investment strategy as it 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.