These levels are crucial for FTSE 100 to end summer lull
27th July 2018 09:01
by Alistair Strang from Trends and Targets
With the blue-chip index flat during the summer season so far, chartist Alistair Strang looks at how things could heat up in the days ahead.
According to history, once the UK declared war on Europe (sorry, just Germany) in 1939, there followed a period of extremely good weather. And very little else! A derisive term, "The Phony War" came into being.
Makes you think, doesn't it.
The stockmarket is doing a great deal at present and despite the break upward the other day, the FTSE 100 appears determined to remain in no man's land, making a series of pretend movements between 7,550 and now 7,750 points. It becomes obvious the only true barometer of what's ahead shall prove to be the retail banks, all three of which are doing not much!
If they start a miracle rise, so shall the FTSE. And if they fall, the FTSE is in quite a bit of trouble.
Of course, with this profound dip into history, it should become obvious we're trying to outline a lack of confidence in just what Friday holds. It certainly feels like movement now below 7,640 points should find its way down to 7,617 points initially. If broken, secondary calculates at 7,555 points. Rather a big ask for a single day, given recent half-hearted attempts. If triggered, stop can be at 7,685 unless the movement triggers in the opening minute of Friday. Should this be the case, it's probably best to ignore it until a break later in the day!
The flip side of the coin is, what happens if the FTSE betters just 7,675 points. It closed the session at 7,670 and a movement such as this allows for 7,686 points initially. If bettered, secondary comes in at 7,702 points allegedly.
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, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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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