This is a little difficult to admit but we’ve absolutely no idea what direction the UK market intends go on Friday 1 December. As a last ditch attempt, we opted to spend a couple of hours watching how Japan was behaving and unfortunately, it would be easier predicting what a cat will do next.
But it is the first of the final month of the year, so perhaps some optimism shall enter the day with traders always chasing an illusory “Santa rally”.
Allegedly, near-term movement exceeding 7,477 points should make an uphill attempt at an initial tame 7,506 points. Should such a level be exceeded, our secondary calculates at 7,536 points, a value which should certainly indicate happier times ahead for the FTSE 100 in the near term.
However, below 7,442 points risks promoting reversal down to 7,408 points. Should such a level break, our secondary works out at 7,374 points, plunging the FTSE into the realms of a truly grotty start to December.
Which is frustrating as, should we go by chart behaviour along with the FTSE’s dance steps in relation to the Red line uptrend from 2020, we should be reporting some optimism, with a suspicion the index intends an eventual 7,613 points.
Unfortunately, when something “should be going up but isn’t”, invariably the converse argument proves to be the correct one.
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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