FTSE for Friday: will it be a better end to the week?
3rd December 2021 07:38
by Alistair Strang from Trends and Targets
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The FTSE 100 has traded a 200-point range so far this week, but the lack of any appreciable gain is worrying independent analyst Alistair Strang. Here are his latest targets for the blue-chip index.
For some reason, December always feels like a month which runs on “fast forward”, at least 2x normal speed. Now, it's time to step back to examine things at the end of a week when the FTSE 100 has spent this week messing around.
Every day, the market has opened down, only to spend the rest of the session recovering. The lack of any appreciable gain is a little worrisome but perhaps we shouldn’t moan about it. Instead, just wait until the UK discovers sufficient excuse to take above the high of the week at 7,183 points.
We can analyse things all day but until the market actually makes a move, it’s far too complicated to search for answers. In the case of the FTSE, until it’s actually discovered the latest branding of Covid-19 is serious, things shall doubtless remain marching on the spot.
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From a near-term perspective, should the FTSE manage above 7,183, we can calculate the potential of movement to an initial 7,220 points. If exceeded, our secondary works out at 7,261 points.
Our alternate scenario required the UK index to weaken below 7,070 as this risks triggering an unpleasant series of reversals.
Initially, we’re looking for 7,035 points with secondary, if broken, at a bottom (ideally) at 6,986 points. Below 6,986 has a warning, our software suggesting a cycle to an eventual 6686 becomes possible.
Have a good weekend and remember to enjoy the first ever Saudi Grand Prix.
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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