Interactive Investor

Should this FTSE 100 performance fill you with confidence?

4th January 2019 09:25

Alistair Strang from Trends and Targets

As we race toward an uncertain Brexit, technical analyst Alistair Strang studies the charts for clues as to future direction for the UK's blue-chip index.

FTSE for Friday 

The return to trading has been marked by a rather flamboyant couple of days, quite a surprise for sessions which are usually quite lethargic. Overall, the position of the FTSE 100 stinks with a visit to our suggested 5,800's looking increasingly certain in the weeks ahead.

Near-term, Friday isn't filling us with confidence. Weakness now below 6,682 points looks very capable of driving the FTSE down to 6,625 points initially. If broken, secondary calculates at 6,583 points.

For any rise to make sense near-term, the index requires better 6,739 points, making some recovery to an initial 6,767 points allegedly possible [this article was first published late last night. Interesting to see the FTSE 100 peaked Friday morning at 6,767.88!]. 

If bettered, secondary is at 6,794 points. If triggered, the tightest stop looks like 6,670 points, stupidly wide for such small gains.

Our best wishes for this year. Somehow, we suspect it shall prove interesting!

Source: Trends and Targets. Past performance is not a reliable indicator of future results

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