Interactive Investor

Here's what must happen to avoid FTSE 100 fall

28th August 2018 08:58

Alistair Strang from Trends and Targets

Nearing the end of what's been a fairly quiet month for the blue-chip index, chartist Alistair Strang looks at the big numbers worth shouting about.

FTSE for this week (FTSE:UKX)

It remains difficult to define exactly what the market intends. While the holiday season has tended to paper over the cracks, there remains a heck of an argument demanding the FTSE fall. The flaw; it hasn't fallen!

Like a broken record, we've been mentioning 7,360 since May and the drop ambition remains as elusive as a politicians integrity.

Presently, the index requires better than blue (7,760) to trash our bigger picture drop fears, fears which now have two distinctly separate formula pointing at 7,360 as a major point of interest. Perhaps less obvious is the secondary at 7,120, should our drop target break.

Quite amazingly, this 7,120 thing rather neatly coincided with a contrived uptrend since the day following the Brexit vote. It's one of these things we're filing in our "that's bloody strange" vault.

The FTSE closed last week at 7,577 points and now required above 7,620 to suggest some recovery shall be real with 7,677 as an initial ambition. If exceeded, secondary calculates at a rather less likely 7,830 points as this would take the market into the realms of higher highs and a bright future ahead.

For now, we're perhaps not clueless but certainly frustrated! However, life is rather brightened up by some sort of international water skiing championship, quite literally outside our windows here in Argyll. Speed boats at over 100mph are impressive and the noise a welcome change from silent yacht races.

Source: interactive investor      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. 

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