Interactive Investor

FTSE for Friday: here is the trigger for another move higher

10th June 2022 07:35

Alistair Strang from Trends and Targets

If the FTSE 100 exceeds this level it would demonstrate that an effort to break free from the current hiatus is possible.

The FTSE 100 spent Thursday stinging investors, but we’d a sneaking suspicion that some recovery can be hoped for on Friday. At least, we had until the US markets threw a wobbly on Thursday evening, the Dow Jones losing 500 points with indecent haste.  

Currently, it appears that above 7,510 points should trigger some proper movement for the UK, as an impressive lunge toward 7,570 calculates as possible. If exceeded, our secondary works out at a less confident looking 7,627 points.

To be honest, we’re less confident about our secondary, due to the fascination shown by the FTSE at 7,600 points in the last week, and we shall not be aghast if the index once again decides to close a session around such a level.

Rather more key for the longer term is the Blue trend line on the chart. Presently, the FTSE 100 needs to close a session above 7,667 to suggest an effort to break free from the current hiatus is possible. But, to be fair, even a nod above the recent high of 7,649 should give early warning for happy days ahead.

Our alternate scenario, if things decide to go pear-shaped, comes should the FTSE manage below 7,467 points – and not with an opening second downward spike. Such movement looks especially troubling, suggesting ongoing weakness to an initial 7,409 points with secondary, if broken, at a bottom of 7,325 points.

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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