FTSE for Friday: Key levels to watch on 19 June 2020
Buoyant stock markets continue to baffle some, but what do the charts tell us?
19th June 2020 08:46
by Alistair Strang from Trends and Targets
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Buoyant stock markets continue to baffle some, but what do the charts tell us?
FTSE 100
It’s worth remembering that our Big Picture calculation demands that the FTSE 100 index exceeds 6,750 before recovery can be taken seriously. Equally, below 6,030 gives the first indication that recovery is failing.
Near term, above 6,280 should prove capable of recovery continuing to an initial 6,320 points. If exceeded, our secondary calculation works out at 6,373 points.
If triggered, the tightest stop is horribly wide at 6,184 points. Perhaps 6,245 will suffice but with the market producing volatile swings, we’re less than confident.
Below 6,184 looks capable of triggering reversal to an initial useless 6,160 points. If broken, secondary calculates at 6,110 points and we’d hope for some sort of bounce at such a level.
Source: Trends and Targets. Past performance is not a guide to future performance.
Nasdaq
Numbers are funny things. The Nasdaq US tech index exceeds 10,000 points and it’s front page news. But we’re a little unsettled at a stock market achieving all-time highs against a backdrop of record unemployment and the other effects of coronavirus.
The Nasdaq now looks capable of continued growth to 11,211 points. If exceeded, secondary is at 11,840 points and we can’t calculate any higher. Go figure! We would advocate a lot of caution if the market gaps the Nasdaq below 9,620 anytime soon.
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.
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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