FTSE 100 must hold above this level
7th April 2017 10:24
FTSE for FRIDAY (FTSE:UKX)
This week has been a bit grotty and as the 7 April is the US Payrolls Day - increasingly less of an influence on the - it must be remembered whatever figures are announced will be real rather than optimistic estimates.
As a result, any market movements are liable to prove pretty solid rather than just three-minute flash in the pans.
Thursday provided quite a confusing session and we're still not comfortable we know what happened. As the index opened below 7,286, we'd expected it to weaken toward 7,230 and a bounce.
However, the harsh reality was the market only dribbled half-way down, bouncing from 7,258 and, as a result (failure at a half way mark is meant to indicate strength), we're supposed to anticipate an up day on the FTSE for Friday.
Our inclination is not to take this too seriously unless the FTSE starts trading above 7,327 as movement to an initial 7,350 becomes possible. Secondary, if bettered, calculates at 7,372 points.
However, since the start of March there's been something going on at 7,250 with no less than four bonks against the glass floor.
It results in the situation where weakness now below 7,250 is liable to provoke sharp downward travel toward 7,080 points - hopefully not in a single session!
Griffin Mining (LSE:GFM)
Sometimes it's fascinating revisiting old predictions, and with we've got a cracker. It was nearly two years ago when we covered Griffin and price behaviour since highlights the need for patience, along with something surprising about trends.
Firstly, the 55p level was a really big deal for us and somehow, despite our projection being from 2015, the price indeed experienced a severe stutter once this calculated level was reached.
In fact, this impediment lasted for four months - rather a long time by any standards.
The situation now is quite interesting but, to cut to the chase, closure above 63p is required to point at near-term growth to 70p, but perhaps, more usefully, the secondary at 86p will prove difficult to avoid in the longer term.
And that's the end of the good news.
On 6 April, the share price was moved to 64.5p at the open with movements as the day progressed almost seeming to punish the share for its temerity.
Near-term, we shall not be surprised to see any weakness below 57p head to 51.5p and hopefully a bounce. The implication should 51p break will be of an attempt toward 38p, perhaps challenging the immediate red uptrend on the chart below.
For now, we're fairly impressed with ourselves - as well as this lot’s price movements - and feel, in the absence of grotty news, the price should achieve 86p in the future.
As always, we still lack the ability to travel in time, but suspect the 70p level will provoke similar behaviour to that displayed by 55p and probably sooner rather than later, assuming weakness toward the 51p level provides a recoil.
Unilever (LSE:ULVR)
Something interesting is brewing with and movement near-term above 3,993p should provide an initially useless 4,067p.
Secondary calculates at a less certain 4,440p as we'd prefer seeing the share price close above 4,070p to make this real.
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.
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