FTSE for FRIDAY and Bakkavor! #CAC40 #US500 Sometimes I wish this was a video presentation, if only for the joy of starting with; “Hello world and welcome to another report from the UK Banana Democracy!” Glancing at worldwide media, the “Dead Parrot” sketch has international recognition and use, rehashed daily to highlight Downing St “plans”.
We ended last week on a throwaway comment, proposing a fairly serious reversal if the FTSE mangled its way below 7300 last Friday. The UK market achieved our proposed bottom, breaking it slightly, of 7164 points 8 minutes after the market opened on Monday morning. There’s little doubt the 136 point reversal was due to speculation about the UK’s political competence. The immediate problem for tomorrow – Friday – as the index keeps approaching the uptrend for 2019. Visually, any break now below 7140 points is liable to prove fairly serious, permitted reversal to an initial 7030 points. Secondary, if broken, is down at 6921 points.
The index closed Thursday at 7234 points, presently requiring above 7298 points to justify any rise being taken seriously. Such a trigger moves allegedly allows continued recovery to an initial 7315 points. Secondary, if bettered, calculates at 7370 which, unfortunately, was also the trigger level required last Friday to allow us to take any rise seriously.
Bakkavor (LSE:BAKK) On the subject of Banana’s, this lot immediately sprung to mind. Famous for devouring the UK company Geest, the banana kings, this Icelandic food group have been listed in London since late 2017, the share price coming very close to a bottom level, a point at which we’d expect a rebound. The immediate situation suggests weakness now below 115 should reverse to 107p, this being the point at which we’d hope for a bounce. Any rebound bettering 128 looks capable of moves to an initial 141p. If exceeded, secondary is a longer term 153. At this point, we shall require reviewing its future.
To be fair, the recent low of 110p was “probably” close enough to bottom, so it’s perhaps worth keeping an eye on them. As always, we’ve a warning. Below 107 and “ultimate” bottom is at 92p. We cannot calculate below such a point.
