FTSE for FRIDAY, Royal Dutch Shell

#FTSE #GOLD Suddenly the outlook for the future became cheery. Unfortunately, nothing to do with the markets but instead, the local doctors phoned, telling when to turn up for an anti-Covid jag. The thought of “normality” was dashed with a prompt reminder the rest of the country also needs stabbed by a steely eyed, unsympathetic, nurse, this liable to take another 3 months. It may be assumed nurses with needles are a personal nightmare. It’s doubtless the case many folk going through chemo retain such a memory, and of course it’s absolutely nothing to do with the nurse. Some women just like seeing grown men terrified…

 

The FTSE appears to be exhibiting similar terror, almost behaving as if it faces an injection of misery. Since the start of 2021, the market spent January in a slow and steady decline with conventional logic suggesting ‘The Big Picture’ says weakness below 6430 risks driving reversal to an initial 6207 points with secondary, if broken, around the 6016 level. With the index presently trading around 6503 points, very little work is required to present a new Lower Low along with the prospect of some trouble. The market requires above 6850 to negate such a scenario.

 

We’ve been anticipating an outbreak of reversals, due to companies releasing some horrific income levels for last year. The most recent, Royal Dutch Shell, proved quite sneaky.

They announced record losses, choosing to balance this with an (astounding) announcement of an increase in dividend. Essentially, they were suggesting “yes, 2020 was dire but we’re thinking of the future now”. As a result, instead of a 20% hammering, the share price reversed by just 2% and resides in an area where we’ve even hope for some sort of bounce. But if it closes below 1297p, things risk going wrong rather fast as there’s a real risk of the price losing 20% from current levels.

It shall be curious, if this pattern continues as further companies issue results. I certainly throws a spanner at our belief the market faces a thrashing, thanks to lack of income from 2020.

 

Returning to the FTSE, near term above 6554 has interesting potentials, allowing movement to an initial 6598 with secondary, if exceeded, calculating at 6654 points. If triggered, the tightest stop level looks wide at 6500 points.

The alternate (and visually more likely) near term scenario allows traffic below 6448 to spell trouble. A triggering movement like this calculates with the potential of reversal to an initial 6411 with secondary, if broken, down at 6388, along with a (almost certain) rebound.

 

Have a good weekend. It’s only 50 days until the F1 season kicks off in Bahrain.

Hey, chart goes here

FUTURES

Time Issued Market Price At Issue Short Entry Fast Exit Slow Exit Stop Long Entry Fast Exit Slow Exit Stop Prior
10:42:21PM BRENT 59.01 57.81 57.46 58.54 59.05 59.25 58.64
10:46:17PM GOLD 1794 1785 1777 1797 1797 1800.5 1786 Success
10:53:05PM FTSE 6498.64 6487 6470 6518 6554 6582.5 6502
10:55:23PM FRANCE 5615 5556 5544 5590 5616 5627 5578 Shambles
11:00:03PM GERMANY 14059 13902 13886 13990 14084 14092.5 13951 Success
11:01:44PM US500 3872.7 3818 3802.5 3850 3877 3913 3815 ‘cess
11:04:07PM DOW 31064 30691 30595 30826 31093 31203.25 30898 Success
11:06:14PM NASDAQ 13569 13346 13299 13486 13597 13737.5 13398
11:09:07PM JAPAN 28637 28363 28262.5 28456 28672 28775.5 28513 ‘cess

 

3/02/2021 FTSE Closed at 6507 points. Change of -0.14%. Total value traded through LSE was: £ 5,250,745,013 a change of -4.46%
2/02/2021 FTSE Closed at 6516 points. Change of 0.77%. Total value traded through LSE was: £ 5,495,808,707 a change of -1.14%
1/02/2021 FTSE Closed at 6466 points. Change of 0.92%. Total value traded through LSE was: £ 5,559,234,674 a change of -18.33%
29/01/2021 FTSE Closed at 6407 points. Change of -1.82%. Total value traded through LSE was: £ 6,807,283,964 a change of 10.19%
28/01/2021 FTSE Closed at 6526 points. Change of -0.62%. Total value traded through LSE was: £ 6,177,631,505 a change of -22.29%
27/01/2021 FTSE Closed at 6567 points. Change of -1.31%. Total value traded through LSE was: £ 7,950,046,552 a change of 35.23%
26/01/2021 FTSE Closed at 6654 points. Change of 0.24%. Total value traded through LSE was: £ 5,878,949,067 a change of -1.5%

This post has already been read 148 times!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.