FTSE for Friday: heading for a record high?
After hitting an 11-month best yesterday, investors are wondering how high the FTSE 100 can go. Independent analyst Alistair Strang publishes his latest chart for the blue-chip index.
22nd March 2024 07:48
by Alistair Strang from Trends and Targets
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The Bank of England yesterday decided to keep interest rates on hold at 5.25%, but a sharp fall in inflation has got markets excited about possible rate cuts this year. It looks like a reduction in borrowing costs in the US is also getting closer.
The FTSE 100 jumped 1.8% in its largest single day movement since September last year, creating a scenario where the London market is finally appearing to perform with some positive potentials.
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Movement next above 7,902 points calculates with the near-term potential of a lift to 7,932 points with our secondary, if this initial ambition is exceeded, working out at 7,980 points.
Additionally, in this instance we can provide a third level target at 8,023 points, nearing the intraday high of February 2023 at 8,047 and presenting an index level where some hesitation feels possible. If this scenario triggers, the tightest stop appears reasonable at 7,862 but, visually, we far prefer giving a wider 7,833 as the stop-loss level.
If everything intends to go wrong, below 7,833 calculates with the chance of reversals to 7,794 points with our secondary, if broken, at a probable bottom of 7,712 points and hopefully a bounce, effectively undoing all the gains from Thursday.
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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