All the important levels for the FTSE 100 on Friday

FTSE for Friday (FTSE:UKX)

It 'feels' like the FTSE 100 bettering 7,450 shall prove fairly important as it permits movement to an initial 7,467 points with secondary, if bettered, at 7,525 points.

We're a touch nervous about the secondary due to the plethora of misery currently infecting the marketplace, along with the unpleasant nature of Fridays recently - it used to be a confident 'up day'.

If the movement triggers, it appears a stop can be fairly tight at 7,417, but realistically we'd prefer placing it below the low of this week – 7,398 points.

What happens if 7,417 breaks?

Famine, pestilence, politicians... Or, more probable, weakness to 7,396 initially with secondary, if broken, down at 7,380 points. If triggered, apparently a stop can be really quite tight at 7,434 points.

Gold (COMEX:GC)

During June, quite a few shares across various sectors broke upward through their long-term downtrend. Prices in the period since have behaved like the UK prime minister faced with a member of the public, doing the unthinkable, slithering below the trend and out of sight.

When we view gold, Brent, even forex prices, this phenomena against major trends is repeated.

What does this mean?

Generally, when a major downtrend is bettered by a share, then the price is forced below again, it bodes really badly for the future. If you stop and think about it, something quashed optimism, yet again placing a price in a nervous region where anything negative will stuff a price royally. And generally very fast.

It's fairly clear the markets are pretty nervous and it becomes painfully probable anything stupid by the government is liable to provoke real trouble. As one political comedian on telly said, if the UK government can't negotiate with some Northern Ireland politicians, what hope do we have when they challenge 27 European countries.

This trend reversal, seen against Gold, Brent, forex, and many shares underlines an obvious concern as to the negotiators competence.

Our suspicion is this shall prove a pity, we're tending to regard Brexit as the economic equivalent of giving everything a good shake up to get the future moving.

As promised, we've looked at gold and even drawn a small polite circle around the trend break which was reversed. It has created the scenario where weakness below $1,242 risks a trip to $1,200, maybe even $1,135 if someone has said something really silly.

If triggered, the stop is quite wide at $1,285 as we'd require the stuff to recover above the prior trend to nonsense the meltdown potentials.

Good luck and have a good weekend.

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.