FTSE for FRIDAY 6/12/2019

#FTSE for FRIDAY, our most popular regular article is now read from Australia to Russia, Reunion Island, Argentina, China and of course the UK and USA. We currently number 41 countries visiting on a Friday. As is said, “No pressure then!”, while writing a cheery near term outlook with a chart more colourful that a childs Xmas card.

Firstly, we need find the all important FTSE Big Number, the point which the market needs break to trash the uptrend (RED) since the crash of 2009. At present, it’s at 6,609 points.

Next, we need review the uptrend (Yellow) since the start of 2016 and it’s at 6875 points.

Finally, we’ve got the uptrend (Green) since the Brexit vote, presently lurking at 6816 points.

Armed with the above 3 numbers, we can decide if the UK stock market is on the verge of collapse. As it’s presently at 7,137, the answer is clearly NO despite suffering a pretty grotty week. The usual suspects can be blamed, the three ‘B’s. Boris, Brexit, and Mr Trump.

Fans of chart patterns (thankfully now following the dinosaurs) will have noted the Head & Shoulders formation on the FTSE during this year. Conventional arithmetic attributed to this pattern suggests the market should relax to 6,607 points. This risks breaking all three major trends, causing a rush for clean underwear. Presently, there is very little making such a drop inevitable. Below 7,000 points would certainly justify some panic though.

However, we do have concerns, thanks to recent movements.

At present, weakness now below 7,130 points risks reversal to an initial 7,098 points. If broken, secondary calculates at 7,026 points. Even visually, there are several reasons to anticipate a rebound, should 7,026 appear. With an election approaching and a fear of “the wrong result”, travel down to such a level makes a lot of sense prior to The Vote. In the event this 7,026 drop target appears and opting for a blind “Long” position, stop needs be pretty wide at 6,950 points.

There’s an issue, should 6,950 break. This would imply a further trip down to 6,844 and probable rebound against the Brexit Vote uptrend in Green.

Additionally, we need consider another factor. Writing about market movements, tossing in loads of numbers, risks utter confusion to the reader as it certainly provokes “number blindness” in the writer. Therefore, with this excellent excuse to pause for a cup of tea, shall return in a moment…

Now armed with a fresh cup of tea, obviously rarely do things move in an utterly straight line, resulting in the scenario of anything near term above 7,181 allegedly being capable of triggering recovery to an initial 7,212 points. If exceeded, secondary calculates at a more interesting 7,261 points. If triggered, the tightest stop is horribly wide at 7,131 points.

Have a good weekend.

Hey, chart goes here
Big Picture FTSE
FREE FIRST MOVE FRIDAY!

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

9:11:45PM

BRENT

63.27

62.37

61.98

   

63.86

64.29

   

‘cess

9:19:07PM

GOLD

1476.33

1472

1466

   

1480

1482

   

Shambles

9:24:53PM

FTSE

7142.32

7127

7099.5

   

7203

7222.5

   

9:27:15PM

FRANCE

5808.9

5785

5767.5

   

5850

5866

   

Success

9:35:58PM

GERMANY

13080

13049

12997

   

13148

13207.5

   

Shambles

9:37:46PM

US500

3117.92

3102

3097.5

   

3120

3126

   

9:42:24PM

DOW

27683

27552

27487.5

   

27772

27830

   

Shambles

9:44:25PM

NASDAQ

8307.37

8268

8255.5

   

8336

8359.5

   

Shambles

9:46:38PM

JAPAN

23311

23244

23167.5

   

23405

23466.5

   

‘cess

 

5/12/2019 FTSE Closed at 7137 points. Change of -0.71%. Total value traded through LSE was: £ 5,778,792,615 a change of 2.21%

4/12/2019 FTSE Closed at 7188 points. Change of 0.42%. Total value traded through LSE was: £ 5,653,961,334 a change of -20.69%

3/12/2019 FTSE Closed at 7158 points. Change of -1.74%. Total value traded through LSE was: £ 7,128,755,265 a change of 21.45%

2/12/2019 FTSE Closed at 7285 points. Change of -0.83%. Total value traded through LSE was: £ 5,869,768,076 a change of 26.83%

29/11/2019 FTSE Closed at 7346 points. Change of -0.94%. Total value traded through LSE was: £ 4,628,092,745 a change of 28.25%

28/11/2019 FTSE Closed at 7416 points. Change of -0.17%. Total value traded through LSE was: £ 3,608,679,537 a change of -31.8%

27/11/2019 FTSE Closed at 7429 points. Change of 0.35%. Total value traded through LSE was: £ 5,291,535,835 a change of -43.03%

 

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