Markets are tricky to read, but our chartist thinks this will happen following a Brexit outcome.
We remain confused at the debate as to whether the UK should exit the Eurovision Song Contest.
Political manoeuvres making the stock market difficult to read, a media similarly confused as to their stance, and a distinct problem with the FTSE 100 at roughly 7,442.915 points all conspire to make this Brexit nonsense chaotic.
The only thing we're inclined to take seriously is our 7,442 level, this important point in history delineated by blue on the chart below.
Apparently, the FTSE faces a 300 point rise should the UK market ever stumble above such a point. It's also worth pointing out the FTSE has experienced an 800 point rise so far this year, a 12.25 gain which is quite at odds with all the predictions of doom.
If the market makes it above 7,442, we anticipate a further 300 point gain for the market.
Near-term it's a different story as there's a risk of weakness establishing. Below 7,367 looks capable of reversal to an initial 7,340. If broken, our secondary calculates down at 7,313 points.
Neither reversal ambition presents a real worry as the red uptrend is presently at 7,143 points. But to be honest, we'd have raised eyebrows should anything permit 7,313 to break as it will tend suggest weakness becoming established.
Surprisingly, if we ignore the blue trend line (presently 7,442), the immediate calculation suggests above 7,420 should generate lift to 7,458 near-term.
If bettered, secondary is a rather more useful 7,563. We have our doubts, especially as the market appears to be giving the blue downtrend a body swerve at present, signalling we're not the only folk with coloured crayons!
We remain suspicious the index will continue to oscillate between red and blue until such time someone raised a white flag and surrenders over the Brexit issue, finally allowing direction to make itself known.
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.
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