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The UK FTSE 100 (.FTSE) rose marginally today after China’s factories showed signs of bouncing back in March, but still delivered its worst quarter since 1987

The UK FTSE 100 (.FTSE) rose marginally today after China’s factories showed signs of bouncing back in March, but still delivered its worst quarter since 1987

The FTSE 100 rose marginally today after China’s factories showed signs of bouncing back in March, but still delivered its worst quarter since 1987 as investors panic over coronavirus.

Britain’s blue-chip index closed 1.68 per cent higher today at 5,657 points. That pushed on from yesterday, when the FTSE 100 rose as the spread of coronavirus cases slowed for the first time in weeks.

Nonetheless, the FTSE 100 delivered its worst three-month performance since 1987, when UK stocks were hammered on Black Monday.

The FTSE 100 finished the quarter today more than 25 per cent lower than three months previously.

Joshua Mahony, senior market analyst at IG, said: “European markets are set to close out the month in positive fashion, with UK listed stocks posting another day of gains to wrap up a relatively positive end to March.

“Despite the welcome rise we have seen towards the end of the month, we look set to see the worst quarter for the FTSE 100 since 1987.

The FTSE 100 was on track for its worst ever quarter earlier this month. But timely interventions by the US’s Federal Reserve and Congress lifted market sentiment last week.

“We have witnessed extreme market volatility in recent weeks,” said Paul Jackson, global head of asset allocation research at Invesco.

He said three things have the potential to ease uncertainty and see investors return to risk: “A working and approved vaccine, a clear reduction in Covid-19 cases and deaths outside of China, and policy support.” 

Neil Wilson of Markets.com said: “Whilst the ‘08 and dotcom drawdowns were larger, it’s the speed at which we saw equities sold off earlier this month which was truly remarkable. 

“Volatility is declining in a way that will give hope, albeit we would tend to think that whilst the bottom has on balance likely been found for equity markets, it could well be felt a few more times.”

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 6,284.99.

The projected upper bound is: 6,158.83.

The projected lower bound is: 5,107.54.

The projected closing price is: 5,633.19.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 67.8175. This is not an overbought or oversold reading. The last signal was a sell 1 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 44.06. 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 buy 5 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 94. This is not a topping or bottoming area. The last signal was a buy 8 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 4 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 108.220 at 5,671.960. Volume was 68% above average (neutral) and Bollinger Bands were 144% wider than normal.

Open     High      Low     Close     Volume___
5,563.7405,702.6605,545.8505,671.9601,602,108,416
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 5,411.28 6,646.01 7,189.42
Volatility: 77 58 32
Volume: 1,718,162,560 1,178,729,856 831,466,112

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 21.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 45 periods.

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