Here's where FTSE 100 livens up
6th January 2017 09:45
by Alistair Strang from Trends and Targets
Share on
FTSE for Friday, Ferrari, and Sirius Petroleum too!
We've chosen this oddball grouping, simply 'cos the FTSE 100 is pretty boring at present - no surprise as for many lucky ones, the Xmas holiday continues until next Monday.
The FTSE closed Thursday at 7,189 and near-term, anything below 7,173 is supposed to provoke 7,152 points.
While the 21-point potential is fairly interesting, the tell will come if 7,152 breaks as it implies weakness and the threat of 7,125 making an appearance as a potential bounce point. The market would require breaking the red line on the chart below - currently 7,025 - to justify a raised eyebrow.
Annoyingly, the market is supposed to be going up, but in the last few sessions we've seen every upward surge arrested around half-way to target. This tends to imply considerable restraint is being applied, but there's little doubt anything now above 7,212 will lead to 7,227 initially with secondary 7,248 points.
Oddly, given the underlying force is toward a longer term 7,358 points, this even makes sense in an obscure way.
Sirius Petroleum
was one we last looked at in 2014 and we'd given an "ultimate bottom" of 1.8p. Needless to say, in the two years since, the share price has broken below this bottom level and explored the delights of a 0.2p share.
But, importantly, it's still trading and recently has been experiencing some reasonable percentages in what seems an unrelenting recovery.
The immediate price cycle shows a target of 1.125p which is fairly interesting given it collides with the downtrend since 2011. What's fairly important - its currently trading around 0.92p - is closure above 1.125 moves the share into a region where the numbers claim the price has officially stopped going down.
Instead, it makes the transit into a region where positive news can drive 2.1p initially, perhaps even 3.5p if a miracle is involved!
Ferrari
This has finally achieved our $60 level, something we'd hoped for while last years' F1 season drove to its conclusion. Our last glance at in November actually proposed a number for the future above 60 with a longer term secondary 66.
However, we tend to suspect some hesitation around the current 60 level as it matches the high at the share's launch. Essentially, a bunch of folk who invested in October 2015 will probably opt to get their investment back with no profit, just a story to tell about a Ferrari which crashed once bought!
However, with closure above 61, it seems probable the price shall accelerate toward 66 next. And, if they opt to start winning F1 races, it's easy to see 76 coming into focus in the future!
Finally, the thick red line on the chart below is at 47.5 currently. Any circumstances capable of reversing Ferrari below this level justifies' a fair degree of panic, as it could easily presage a campaign chasing the circled manipulation gaps!
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.