UK FTSE 100 (.FTSE) Advances on Hopes of Monetary Stimulus

UK FTSE 100 (.FTSE) Advances on Hopes of Monetary Stimulus

UK FTSE 100 (.FTSE) advances on hopes of monetary stimulus

UK blue-chips edged higher on Wednesday,buoyed by hopes of monetary stimulus from central banks as economic growth slows due to a prolonged trade war, while signs of a thaw in U.S.-China trade dispute also lifted sentiment.

The FTSE 100 .FTSE was 0.4% higher by 0713 GMT, while the midcap index .FTMC was up 0.3%.

Asia-facing financials and mining heavyweights .FTNMX1770 were powering gains for the main bourse after a report that China will introduce important measures to ease the negative impact of the trade war with United States.

Another news working in favour of multinational stocks was a move from China to exempt 16 types of U.S. products from additional retaliatory tariffs.

Smaller companies recorded some sharp moves in early deals,with Capital & Regional CAL.L jumping 15% after the company said Growth point Properties was in talks to buy a majority stake and Gulf Marine Services GMS.L plunging 13% after delaying results.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,517.71.

The projected lower bound is: 7,149.51.

The projected closing price is: 7,333.61.

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 22 white candles and 28 black candles for a net of 6 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 57.6625. This is not an overbought or oversold reading. The last signal was a sell 4 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 56.00. 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 24 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 98. This is not a topping or bottoming area. The last signal was a sell 3 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 10 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 70.080 at 7,338.030. Volume was 14% above average (neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
7,267.9507,346.7107,267.9507,338.030 829,117,504
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,264.82 7,362.12 7,205.57
Volatility: 11 16 15
Volume: 722,385,536 706,832,512 725,821,632

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 1.8% above its 200-period moving average and is in an upward 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 bullish on .FTSE and have had this outlook for the last 2 periods.

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