UK FTSE 100 (.FTSE) All eyes on Fed minutes
FTSE 100 closed higher midweek as traders awaited the publications minutes from last month’s US Federal Reserve meeting.
Traders hope the tone from the US monetary policy committee meeting will be towards a further easing of interest rates, rather than a tightening of policy, which is making dealers buy up shares.
“In late July, the Fed cut rates, and dealers are banking on dovish language in the report, which might signal further rate cuts this year,” noted David Madden, analyst at London-based CMC Markets.
“Since the rate cut, the global macroeconomic mood has soured – US-China trade tensions, the UK and Germany saw negative growth, and increased unrest in Hong Kong,” he added.
The UK’s premier share index finished up 78.97 points at 7,203.97. Meanwhile, the more UK company focused FTSE 250 added 199.66 points at 19,207.75 as no-deal Brexit fears were apparently pushed aside.
On currency markets, the pound lost 0.22% against the US dollar further supporting the internationally-focused Footsie, while the gold price was near flat at US$1,513 an ounce.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 7,339.82.
The projected upper bound is: 7,379.96.
The projected lower bound is: 7,021.43.
The projected closing price is: 7,200.70.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 63.5297. This is not an overbought or oversold reading. The last signal was a buy 8 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 43.15. 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 10 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 -35. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 78.970 at 7,203.970. Volume was 15% below average (neutral) and Bollinger Bands were 125% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,186.80 7,418.41 7,192.74
Volatility: 18 15 15
Volume: 710,557,568 709,199,040 734,813,568
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.
FTSE 100 INDEX is currently 0.2% 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 13 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.