FTSE FOR FRIDAY (FTSE:UKX) Sometimes we can feel uncomfortably helpless when watching and analysing the markets. The FTSE, despite some fair weather antics, remains actually rather gloomy and we tend fear a problem is about to rear its head and bite.
Actually, the severity of any bite remains not a great issue due to the market overall playing around within an uptrend. But to cut to the chase, we expect the index to make it below 7,400, requiring above 7730 to nonsense the prospect.
The reason for waffling and explaining danger is fairly simple. We’re tending expect some near term upward travel on the market, truly an oddity as Fridays usually stink. But the immediate situation for the FTSE proper (not after hours futures) is of growth now bettering 7632 being capable of reaching 7656 initially. If bettered, secondary is at 7684.
As the chart shows, this sort of movement does not exit the downtrend to below 7400 but should the index somehow better 7684, we shall raise an eyebrow to say the least as it becomes likely the immediate downtrend will be exceeded fairly comfortably.
However, as always we lean to the side of caution as below RED – presently 7530 – once again enters the region with ambitions around 7380.