How FTSE 100 can get to 7,600

It looked like the impressive rebound from a Q4 sell-off was over, but our chartist thinks otherwise.

Ferrari and Friday FTSE

Despite enjoying a horrific F1 season, Ferrari (NYSE:RACE) share price appears to be resilient. We'd assumed, following last weekend's attempt to "cheat" their way to victory, the price would take a hammering but instead, it remains on track with hope of giving further growth to new highs.

Perhaps the more interesting thing about this nonsense is final proof Ferrari performance on track has nothing to do with their share price!

The immediate situation allows for moves above $155.75 to provoke continued growth to $160 and a new all-time high. Of greater interest is the secondary, should $155.75 be exceeded. We calculate Ferrari has sufficient impetus for a longer-term boost to $185.

For it all to go wrong, the share requires closing a session below $132 dollars. While perhaps below the immediate uptrend at $140 will serve to cancel the future, we'd really prefer the $132 level as the "safe" point for stop-loss.

Source: Trends and Targets      Past performance is not a guide to future performance

FTSE for FRIDAY

Less controversial than Ferrari but no less exciting (okay, that's rubbish), the UK index broke the immediate uptrend for 2019, only to recover above it a few weeks later.

In fact, from a bigger picture perspective, it's difficult not to admit we suspect the next major point of interest is around the 7,600 level. Our usual logic implies this means short positions are liable to underperform.

Near term, reversal below 7,350 suggests coming travel down to 7,300, a point we'd expect a rebound. In fact, we'd have considerable alarm if 7,300 breaks as reversal to 7,230 and below becomes very possible.

More likely, it appears moves above 7,381 should power recovery to a truly useless 7,392 points. What surprises, if 7,392 is exceeded, is our secondary at 7,471 points, along with a challenge of the downtrend since last year. 

Recent, often grudging, movements of the FTSE tend to suggest hoping for a 100-point day should join other ambitions, such as wishing the media would focus less on Brexit and political leadership campaigns. Surely there's a cat up a tree somewhere, deserving an in-depth report.

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.