#FTSE #Nasdaq When we last reviewed the Banks Index, we provided an argument favouring 1,896 as “bottom”. It hit this level today, 17th Sept, and has rebounded a bit. Unfortunately (as always) we have a couple of concerns worth mentioning before anyone goes ‘all out’ on one of the retail banks.
On the day the Banks Index reversed and achieved our Big Picture drop target level, it also broke target quite marginally, hitting 1895.37 points before bouncing. Normally we’d tend shrug off a target level exceeded by 0.63 points as it’s minimal and probably a calibration error. Alas, there’s a sodding great HOWEVER which dare not be forgotten. Both Barclays and NatWest managed to breach pretty important numbers, each share slithering below the crucial 100p level during Thursdays trade. While neither share closed the day below this psychological level, the message was sent of 100p no longer being sacrosanct for either bank share price, creating a situation where we shall not be surprised to witness further reversals on these two major components of the sector.
About the best we can hope is for the 94p level, curiously an identical possible bounce level for each bank, shall be honoured in the days ahead. If this share price level fails to provide a trampoline effect, it becomes pretty certain our ‘Post Covid-19 Drop’ computation of 1730 shall provide the proper bounce level for the banking sector.
Confused? You should try writing this stuff!
FTSE for FRIDAY (FTSE:UKX) On Thursday 17th, the FTSE experienced some really strange movements and closed the session at 6062 points. We shall be quite interested, if the index manages above 6085 points as this will suggest some coming recovery to an initial 6120 points. If exceeded, our secondary calculation works out at a less confident looking 6145 points. Should this scenario trigger, the tightest stop loss level looks like 6045 points, a number which appears sensible in the risk/reward stakes.
Importantly, in the event of the above coming to fruition, we shall anticipate further movement in the week ahead, ideally almost attempting the 6400 level!
Of course, there’s a potential flip side to the argument. We’d have concerns if the FTSE finds an excuse to wander below the 6019 level as reversal to 5983 is expected. If broken, secondary calculates at 5956 points and hopefully a bounce.
FUTURES
| Time Issued | Market | Price At Issue | Short Entry | Fast Exit | Slow Exit | Stop | Long Entry | Fast Exit | Slow Exit | Stop | Prior |
| 9:59:34PM | BRENT | 43.67 | 42.9 | 42.58 | 43.7 | 43.84 | 44.13 | 43.3 | ‘cess | ||
| 10:01:43PM | GOLD | 1944 | 1941 | 1934 | 1950 | 1949 | 1953 | 1942 | Success | ||
| 10:04:14PM | FTSE | 6045 | 6019 | 5979 | 6059 | 6059 | 6068.5 | 6020 | Shambles | ||
| 10:32:15PM | FRANCE | 5042.5 | 5015 | 4999.5 | 5048 | 5055 | 5076.5 | 5027 | Success | ||
| 10:34:38PM | GERMANY | 13226 | 13095 | 13028.5 | 13203 | 13255 | 13287.5 | 13156 | |||
| 10:36:09PM | US500 | 3356.17 | 3319 | 3302 | 3364 | 3365 | 3377.5 | 3328 | Success | ||
| 10:38:35PM | DOW | 27910.7 | 27674 | 27493.5 | 27844 | 28062 | 28260.5 | 27800 | Success | ||
| 10:40:42PM | NASDAQ | 11078 | 10915 | 10657 | 11190 | 11196 | 11318.5 | 11018 | Success | ||
| 10:42:26PM | JAPAN | 23322 | 23263 | 23204.5 | 23359 | 23367 | 23396 | 23268 | Success |
