Interactive Investor

What's the FTSE 100 going to do Friday?

1st September 2017 09:25

Alistair Strang from Trends and Targets

FTSE for Friday and BMR Group (FTSE:UKX & LSE:BMR)

Our comments about a 'surprise' recovery at the start of September look close to fruition. Perhaps we saw this on Thursday (usually a negative day on the FTSE 100) with the market appearing quite uppity.

This situation now expects anything near term above 7,444 to continue to an initial 7,472 points with secondary, if bettered, at 7,545 points.

Recent behaviour has tended to legislate against 100-point days on the FTSE but who knows, a new month, new optimism, and all of the USA are fully employed building an Ark apparently.

If triggered, the FTSE needs below 7,416 to cancel any immediate optimism, a dangerously tight stop-loss when viewed against a 100-point potential. If we attribute our lower low laws, the stop should really be 7,364 points!

So what happens if 7,364 is broken?

Initial weakness to 7,314 looks about right. Secondary comes in at 7,255 points. If triggered, stop can be at 7,381 points, again surprisingly tight!

BMR Group

Sometimes, we see a share behaving strangely and feel the need to say something, if it's one we know but don't cover on a daily basis for clients.

On Thursday 31 August, BMR did something stupid, so we looked at moves from 8am until 11.30, then Tweeted about the potentials of 6p appearing, perhaps even 7.25p. Once suspension was lifted, it shot up to 6.5p before being murdered!

The unpleasant inset on the chart below illustrates our dismay. Despite a stonking surge to 6.5p, considerable care was taken to ensure the share price actually closed the session below the uptrend since the start of 2016.

This particular uptrend does appear important, given the circled movement at the end of June when the share was forced below the trend. It's almost like someone doesn't actually want the price to go up just yet as it closed the session at 3.75p, indicating anything continuing below 3.75p should find 3.25p hopefully coated with trampoline juice.

Any bounce now continuing above 6.15p looks capable of 7.15p next with secondary coming in at 9.375p. Fingers crossed time, as usual!

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.