How FTSE 100 can rise another 40%

FTSE for Friday (FTSE:UKX)

Before launching into a tirade as to Friday's immediate potentials, we always start with a glance at the Big Picture and noticed something quite interesting for the FTSE 100.

Essentially, if it now were to close a session above 7,393, it enters a cycle toward 8,186 initially with secondary 10,195 points. Stop can be just 7,201 points.

If the FTSE were a share, we'd already be thinking it intends to hit 8,186 in the fullness of time, but this, probably, isn't one to print out and stick on the wall (just yet).

But we shall cover this scenario in our next report for the coming week. It's impossible to ignore the market tends to grow in the face of negative media commentary by (increasingly less respected) analysts, so we're taking a look upward.

However, our analysis for the FTSE on Friday provides the immediate report - as always, please remember we are discussing the FTSE and not after-hours FTSE futures.

The FTSE closed Thursday's session at 7,316 points with movements during the day providing a surprising degree of encouragement for Friday.

The immediate situation suggests anything near-term above 7,322 points should provoke a fairly boring 7,334 points, but the secondary, if bettered, is at 7,358 points.

If triggered, stop can be at a fairly wide 7,265 points. Or, if insane, 7,295 points as this is the tightest possible game plan. And, of course, if the day goes nuts for any reason, 7,440 is shown at the top of the chart!

On the flip side of the coin, what happens if 7,265 breaks?

We'd expect initial weakness toward 7,246 points with secondary, if broken, at 7,186 points. The tightest stop is at 7,312 points.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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.