Here's how the FTSE 100 can surge over Christmas

The city index continues to travel northwards. Our chartist sees if a Santa rally is on the cards.

FTSE for FRIDAY (FTSE:UKX) 

As we crawl, remorselessly into the jaws of Xmas, the market has already entered "dozy mode". This is the period of hiatus, when the grown-ups have left the building, leaving a bunch of unpaid interns <joke> to man the market's keyboards.

The puzzle, usually this boring bit starts on the 24th with a "surprise" flurry of activity 15 minutes before the market closes for the holiday.

All kidding aside, we're genuinely puzzled at the lack of activity in prices. Financial volumes traded through London have been quite literally record breaking for 2019, since the General Election result was declared.

Common sense alone should indicate fireworks but the reality has been somewhat sluggish. Perhaps, Friday, the dreaded 3rd Friday of the month and clearing day, shall prove capable of igniting some interest at 10.15 am.

At present, the FTSE 100 certainly appears poised for some action as movement now above 7,577 points (we are talking about the FTSE, not after-hours futures) looks very capable of a surge upward to an initial 7,607 points. If exceeded, our secondary calculation is at 7,668 points. If triggered, visually the tightest stop should be 7,500 but, to be real, 7,530 should suffice if the market plays by the rules.

The surprising thing since the Conservative victory comes from our Big Picture calculation, this now firmly promoting 7,750 as a danger level when the market almost must should experience some volatility.

To suggest concern, the index needs to fall below 7,526, this looking capable of triggering reversal to an initial 7,504 points. If broken, secondary comes in at 7,476 points though, if some grotty news breaks, it could quickly crash down to 7,425 points.

We're only giving the down criteria as a sort of CYA exercise as the FTSE appears to be enjoying some strong upward forces, for the present.

Perhaps this is one of these "Santa Rally" things!

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.