FTSE for Friday: how to cancel drop potentials
There are still plenty of nerves around markets following a period of volatility. Independent analyst Alistair Strang looks at odds of further falls or a surprise recovery.
21st November 2025 07:53
by Alistair Strang from Trends and Targets
Market reversals for the FTSE 100 have been quite vivid this week with more than a taste of things being deliberately pushed downward.
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Now, markets like the Nasdaq, the German DAX or the Nikkei are poised just above triggers for a 1,000-point drop, with the FTSE always anxious to be part of the “me too” crowd, poised for a pro-rata 300-point negative movement.
The immediate scenario for the FTSE 100 allows traffic below 9,500 points to trigger reversals to an initial 9,399 points with our secondary, if broken, at 92,21 points. The inset on the chart below, showing recent closing prices, highlights the important detail that the FTSE needs to close a session above 9,560 points to cancel our reversal arithmetic. Even daily traffic above 9,595 should regain the Red uptrend, ticking a major box in cancelling these drop potentials.
The “surprise recovery” scenario suggests movement above 9,560 should trigger near-term traffic toward an initial useless 9,573 points with our secondary, if beaten, at 9,593 points, giving the market the potential of closing above the point of trend break on the insert below.
This also introduces a further potential above 9,593 as the bigger picture hints at an initial 9,653 points with secondary 9,701, negating all the risks of a severe drop ahead while also placing the FTSE in an excellent position to waffle around while doing very little while we sneak up on Christmas.
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.
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