FTSE for Friday: time for some proper gains?
19th May 2023 07:14
by Alistair Strang from Trends and Targets
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It's spent this month trading sideways, but the FTSE 100 is still in a zone where you can chart a path to 8,200. Independent analyst explains.
Since the start of May, most folk will have noticed the FTSE 100 has been effectively parked, waiting for an excuse to do something chaotic or useful. We’ve mentioned previously, with the index breaking above the Blue trend line which delineates market highs since 2018, it should prove relatively easy for the market to experience some proper gains, as it’s trading in a zone with a long-term attraction above 8,200 points.
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Near term, above 7,786 suggests the potential of gains in the direction of an initial 7,827 points with secondary, if bettered, at 7,875. If triggered, the tightest sane stop looks like 7,723 points.
Our alternative scenario is less flamboyant, our calculations suggesting weakness below 7,723 risks a visit to 7,707 points with secondary, if broken, at 7,675 and the threat of the FTSE remaining trapped in a parking zone.
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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