FTSE for Friday: looking for good news in the charts
10th September 2021 07:05
by Alistair Strang from Trends and Targets
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After a terrible few days, independent analyst Alistair Strang looks at what's in store for the UK's top index today and beyond.
The UK market has experienced a pretty foul few days, closing the session on Thursday with a ‘lower low’, which dumped the index in a zone with the potential of ongoing reversals to 6,830.
Perhaps worse, the market has now broken its eighth uptrend in a year. Despite none of the previous trend breaks proving to be a precursor to disaster, the unpleasant situation now is the index requires above 7,088 currently before any recovery dare be taken seriously. Regaining a trend is always a good thing, we find.
Source: Trends and Targets. Past performance is not a guide to future performance.
Near term, below 6,998 points threatens reversal to an initial 6,977 points. If broken, our secondary calculates at 6,944 points. If triggered, the tightest stop feels like 7,053 points.
Alternately, above 7,053 works out with an initial ambition of 7,088 points, a curious number given the level required to regain the prior uptrend. Our secondary calculation is quite surprising, apparently movement above 7,088 should provoke rapid gains in the direction of 7,200. Rather neatly, such a target will serve to wipe out the losses of the last few days.
Source: Trends and Targets. Past performance is not a guide to future performance.
Here in Argyll. the excitement of seeing a nuclear sub quickly wanes, along with mild concern at Europe’s largest nuclear weapons store being just a few miles away. However, a client asked if we’ve ever looked at the price of Uranium as surely the world’s overwhelming demand more the element for cheaper, greener, energy, and also, a cleaner environment must be making the price attractive.
Oddly, we’ve never noticed ‘Green’ Political parties campaigning for more nuclear power, but from a common sense perspective, such an energy source does tend make a lot of sense. Especially now, as many years of expertise in handling uranium safely exist. Some fools even live, quite comfortably, with massive nuclear stores on their doorstep!
Unable to identify a reliable futures market for the product daily price movements, we did a little digging and quickly unearthed Uranium Energy Corp (AMEX:UEC), a US-based mining and exploration company.
At present, their share price is around €2.95. Life promises to become interesting should the company start trading above $3.50 as this should trigger movement to $5.6 next. Above this level, things become fascinating, thanks to our secondary calculating at $8.17 and a new all-time high.
Source: Trends and Targets. Past performance is not a guide to future performance.
Have a good weekend.
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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