FTSE for Friday: another crack at record high
Following a full recovery from the tariff crash, the UK market is attracting the attention of international investors. Independent analyst Alistair Strang reveals his latest forecast.
6th June 2025 07:54
by Alistair Strang from Trends and Targets
The FTSE 100 has walked out of May and entered June, displaying the most grudging series of "higher highs" in the first week of this month. We've mentioned previously our suspicion that the market has noticed it's on the verge of strong movement and is now, almost desperately, trying to avoid it.
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Earlier this year, the market closed at a high of 8,873 points, and we regard this as the final level above which the market should (according to our logic) have no choice other than to sharply move further toward our ruling destination, currently calculating at an ambitious 9,727 points. With the FTSE closing at 8,811 on Thursday 5 June, very little work now needs to be done to challenge our trigger point of 8,873.
Or in other words, we shall not be surprised if the market discovers an excuse to panic, introducing some reversals to knock the FTSE back into its box.
Certainly, movement now below 8,750 shall be regarded as capable of provoking reversals to an initial 8,634 with our secondary, if broken, a probable bottom at 8,588, once again dumping the UK Index into a parking orbit when it gets to do the whole thing over again.
Of course, we could be utterly wrong, the lethargy infecting the UK market just being a figment of our own irritation.
More likely, it seems to be the case that near-term movement above 8,839 should challenge a spectacular rise to 8,845 points next, an ambition we'd describe as utterly useless. It's probably safer (and saner) to suggest movement above 8,845 should bring a near-term 8,895 next with our "longer term" secondary, if bettered, at 8,959 points. Unfortunately, the most sane stop loss level for this scenario is at 8,750 points, giving a painfully large safety margin to match the risk/reward scenario.
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.
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