Interactive Investor

Key FTSE 100 levels for Friday

18th August 2017 09:36

Alistair Strang from Trends and Targets

FTSE 100 for Friday (FTSE:UKX)

Following a week of artificial movements, generated by artificial outrage against artificial politicians, the FTSE 100 closed on Thursday somewhat ambiguously.

Strangely, at lunchtime we'd given a client drop parameter from 7,398 points to 7,382.05 points and the market bounced at 7,382.16, so perhaps some strength exists as our target was not broken.

The implication now is, should 7,382 break, we should anticipate coming weakness to 7,347 initially. Secondary calculates at a less confident looking 7301.78 points. If triggered, the tightest stop appears to be 7,420 points.

However - and, as always, do remember we are talking about the FTSE 100 and not FTSE futures - we're inclined to take some hope of Friday being able to provoke some sort of upward day and the manufactured outrage against whatever the media took offence to seems to be waning considerably.

It results in the situation where the FTSE need only better 7,435 to give hope for a change in the index's fortunes, as near-term oomph to an initial 7,452 points appears uselessly possible.

Secondary, if bettered, comes in at 7,502 points. If triggered, the tightest stop level calculates at 7,370 points.

The funny thing is, the underlying longer-term influence remains at 7,544 points and, despite a week of media hysterics, this appears to remain the case.

In fact, if we adopt rose-tinted glasses, there's now a heck of an argument favouring a distant 7,731 as the secret ruling attraction. The index needs to slither below 7,305 to nonsense such a cunning plan!

In addition, it's probably worth noting the FTSE has effectively done nothing significant since June. As the picture below illustrates, the market is essentially flatlining in a 250-point range.

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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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