FTSE 1OO index: Braced for the worst
After losing 150 points in a shortened week, our chartist reveals what he thinks of the blue-chip index.
31st May 2019 08:45
by Alistair Strang from Trends and Targets
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After losing 150 points in a shortened week, our chartist reveals what he thinks of the blue-chip index.
FTSE for FRIDAY (FTSE:UKX)
As for the FTSE 100 index for Friday, we lack confidence for the day. In theory, above 7,232 should now promote a visit to 7,245 points initially. Secondary, if bettered on the first upward surge, calculates at a more useful 7,274 points. If triggered, the tightest stop is at 7,198 points.
What happens if 7,198 breaks?
We'd expect weakness down to an initial 7,180 points. If broken, secondary is at 7,147 points. If triggered, the tightest stop looks like 7,230 points.
The water is further muddied by the fact that Friday is the last day of a month. For some reason, this often sees logic abandoned, faster than a politicians stance on Brexit.
Our feeling earlier in the week is to expect the FTSE to eventually reverse and hit a "bottom" at 7,106 points.
Perhaps some indicators are due to be released which shall justify a really grotty end to the month.
Additionally, it is worth pointing out that the FTSE has now slithered below the uptrend for 2019, this tends to suggest long positions risk trouble unless the index betters 7,237 points, regaining the trend.
We're braced for the worst.
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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