As the market is closed on Friday, due to everyone eating chocolate, we’ve opted to end the trading week with our usual look at FTSE near term potentials. April has proven less than impressive, doubtless due to politicians unable to roll away the stone blocking a sane conclusion to the reality of Brexit.
The immediate situation for the FTSE appears quite straightforward. Moves now exceeding 7480 should bring continued recovery to an initial 7511 points. If exceeded, our secondary calculation is at 7561, along with some stumbles. Tightest stop looks like 7444 points.
If trouble is coming – which actually looks possible for Thursday – reversal below 7444 points looks capable of travel down to an initial 7399 points. If broken, our secondary calculation is at 7352 points.
It’s fairly important to remember the uptrend for 2019 is presently lurking at 7328 points with weakness below such a level looking capable of a sharp 80 point fall to around 7245 points!
For light relief, or more probably because it’s important, we’ve given a couple of insets on the chart. These insets show what’s happened since it became clear Brexit was being delayed. The UK market has reacted very, very, carefully, with a lack of flamboyance seen on other markets in Europe and the USA. The respect being paid to the ruling BLUE downtrend is fairly important as it implies weakness now below BLUE is liable to provoke sharp reversals. Essentially, this is our doctrine of “If it ain’t goin’ up, it’s goin’ down” in action. Despite our speculative trading scenario above, the BLUE line advocates extreme caution if the index slides below – presently 7417 points.
Have a good Easter. We’re trying to figure out how to amuse grandchildren with a new tradition; setting fire to Easter eggs and rolling them down a hill. What could go wrong?