Charting FTSE 100's path to 7,100

First written: 22 November at 23:12

Currently, the FTSE 100 is a bit rubbish, failing to illustrate direction and frankly being rather dangerous.

The FTSE itself needs to better 6,859 anytime soon as it should experience sharp growth toward 6,926 initially. Secondary, if such is bettered, calculates at a dubious 7,103 points.

If things intend to go wrong, the market needs below 6,753, as this should trigger an initial 6,688 with secondary 6,585 points. Or 6,450 if something really nasty has been announced.

Remember, this section only relates to the FTSE during market hours, not FTSE Futures.

BMR Group

We last viewed BMRa month ago and an update seems justified. Our rather "teachy" article had illustrated a historical glass ceiling at 7p and speculated on what would happen, should the share price successfully better 7p.

Thankfully, we were proven correct, but it's behaving a bit stupidly since.

The funny thing is, despite relaxation to 6.2p, we remain fairly comfortable with its future prospects. The price bettered our initial 7.625p target quite forcefully, eventually making its way up to 8.6p before ingesting lemming juice.

As a few of the BMR regulars are aware, we'd answered their emails pointing out weakness toward 6.15p had become possible. The recent bounces from 6.2p are perhaps sufficiently close to our bottom target and, therefore, we need to look for reasons which will justify another surge uphill.

One small word of warning first. If this manages to close a session below 6.1p, it would scare the pants off us, as it ticks the first box for weakness to 4.35p.

However, near-term, should the price better an initial 6.9p, we calculate growth (again) to 7.6p with secondary 8.2p.

Neither target is particularly attractive, but beating 8.2p would be a big deal and not only make our longer-term 9.1p very possible, but also force us to speculate on whether 11p will appear as a "top" on the current price cycle.

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.