Oil and miners push up UK FTSE 100 (.FTSE) as coronavirus fears subside

Oil and miners push up UK FTSE 100 (.FTSE) as coronavirus fears subside

Oil and miners push up UK FTSE 100 (.FTSE) as coronavirus fears subside

Mining and oil stocks supported the FTSE 100 as it followed global markets higher as buyers drew relief from a slowdown in the number of new coronavirus cases.

US and European equities made fresh highs yesterday and momentum carried through the Asian trading session as the number of new coronavirus cases in China overnight fell to the lowest figure since January.

Markets.com analyst Neil Wilson cautioned the authorities had changed the way cases are recorded  however, so ‘we should be cautious about taking Chinese claims at face value’.

With the threat of coronavirus subsiding, oil stocks helped the UK’s senior market inch up 0.3%, or 22 points, to 7,521. Oil rallied off its lows, pushing Royal Dutch Shell (RDSA) up 1% to £20.09 and BP (BP) up 0.2% to 471p.

Mining stocks, which had been hit by slowing demand from China in the midst of the virus outbreak, also rallied:

  • Anglo American (AAL) up 1.6% at £2087
  • Rio Tinto (RIO) up 1.6% at £42.19
  • BHP Group (BHP) up 1.4% at £16.96
  • Glencore (GLEN) up 1% at 235p
  • Antofagasta (ANTO) up 0.7% at 852p

The biggest riser on the FTSE 100 had nothing to do with coronavirus, as food delivery platform Just Eat (JE) gained 2%, or 160p, to trade at £81.60 after an upgrade yesterday from JPMorgan analysts, who said they expect the UK market growth to ‘accelerate strongly’. Last week Just Eat merged into its new owner Takeway.com.

After riding high at the top of the blue chips yesterday, travel agent Tui (TUI) gave back some of its gains, falling to the bottom of the main index after shedding 4.5%, or 44p, to trade at 923p.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,720.09.

The projected lower bound is: 7,356.17.

The projected closing price is: 7,538.13.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.3437. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.42. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 31 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 92. This is not a topping or bottoming area. The last signal was a buy 6 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 34.930 at 7,534.370. Volume was 18% below average (neutral) and Bollinger Bands were 13% wider than normal.

Open     High      Low     Close     Volume___
7,499.4407,547.6507,499.0107,534.370 573,042,048
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,436.88 7,481.00 7,365.23
Volatility: 17 16 14
Volume: 680,800,768 663,441,280 712,613,376

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FTSE 100 INDEX is currently 2.3% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .FTSE at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .FTSE and have had this outlook for the last 11 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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