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FTSE for Friday: enthusiastic about FTSE 100 and better times for AIM

Recent stock market euphoria hasn't been confined to the big companies on Wall Street and the FTSE 100, smaller companies on AIM are joining in too. Independent analyst Alistair Strang explains.

10th May 2024 07:38

by Alistair Strang from Trends and Targets

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The most recent 16 sessions have experienced just three days  where marginal FTSE 100 reversals occurred. And even the word “marginal” may be too expansive as 1 May only managed to lose 23 points before things again became interesting.

Oddly though, from a Big Picture perspective, there appears to be a slender chance of the 8,403 level provoking some near term hesitation, despite the underlying trend still pointing upward.

But first, the UK AIM market has finally taken an interest in proceedings, recovering above the Red uptrend and also achieving a higher high. 

Above 793 points should next enter a cycle to an initial 824 with secondary, if beaten, at 858 points and some possible hesitation. But for the longer term, the AIM has just tentatively ticked the first box for recovery to an eventual 1,107 points. It’s certain a 41% growth potential should contain sufficient pixy dust to start some of the more stagnant shares moving.


Source: Trends and Targets. Past performance is not a guide to future performance.

The FTSE 100 is bothering us a little due to it now trading in Big Picture territory with some of our future ambitions sounding a little enthusiastic. It’s now the case where movement above 8,403 points should next trigger a visit to 8,513 points with our secondary, if beaten, at 8,609 points.

That secondary takes the market into a zone where we suspect some real hesitation shall make itself known, doubtless due to the collective disbelief of those holding FTSE 100 shares. Should this trigger, the tightest stop-loss looks like 8,335 points.

If things intend to go horribly wrong, below 8,301 now risks triggering reversal to 8,099 with our secondary, if broken, at 8,014 points and a return to where everything was before it started go right!

Have a good weekend, hopefully with the chance to enjoy some decent weather.


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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