FTSE 100: will the fall continue?
Markets opted for a "the sky is falling" stance yesterday. Our chartist tracks potential movements.
4th September 2020 09:25
by Alistair Strang from Trends and Targets
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Markets opted for a ‘the sky is falling’ stance yesterday. Our chartist tracks potential movements.
FTSE for Friday (FTSE:UKX)
The markets opted for a "the sky is falling" stance on Thursday as the day progressed, one which looks capable of carrying forward into Friday.
Perhaps Wall Street is sending a contradictory signal. However, we suspect, if this is the case, things shall only improve for Europe once the USA awakens.
Near-term, we shall have concerns should the FTSE 100 manage to trade below 5,830 as it risks starting a cycle toward 5,713 points.
If broken, our secondary calculates at 5,605 points and hopefully a rebound, thanks to the risk of further reductions in 100 point increments!
The converse argument is less confident, needing the UK index to trade above 5,872 points to give some hope of recovery, allowing movement to an initial 5,900 points with secondary, if exceeded, a rather less confident-looking 5,955 points.
Just to make things more fun, it's also the first Friday of the new month and US payrolls day, and thus capable of lunatic swings around 1.30pm.
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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