UK FTSE 100 (.FTSE) at near-3-month high

UK FTSE 100 (.FTSE) at near-3-month high

UK FTSE 100 (.FTSE) at near-3-month high

British blue-chip shares surged to their highest in nearly three months on Tuesday as heavyweight BP doubled its annual profit and miners rallied on higher iron ore prices while a weaker pound was also supportive.

London’s main index .FTSE added 2 percent, extending itswinning streak to six days to hit levels not seen since Nov. 12.The midcap index .FTMC also touched its highest since Novemberwith a 0.8 percent rise.

Oil major BP BP.L jumped 5.2 percent on its best day innearly three years as its full-year numbers topped expectationsand helped it join competitors in posting a strong 2018.

Mining stocks .FTNMX1770 hit their highest since Juneafter Brazil ordered top producer Vale to shut its tailings damsfollowing a deadly incident at one of its sites last week,raising concerns about falling output.

Export-focused blue chips including British American TobaccoBATS.L , GlaxoSmithKline GSK.L and AstraZenecaAZN.L roseon the weaker pound.

Sterling hit two-week lows after a survey showed firms inBritain’s dominant services sector reported job cuts for thefirst time in six years, while uncertainty grew about theprogress of Brexit negotiations as nothing significant emergedfrom a visit to Northern Ireland by Prime Minister Theresa May.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 7,003.41.

The projected upper bound is: 7,398.84.

The projected lower bound is: 6,964.58.

The projected closing price is: 7,181.71.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 23 white candles and 27 black candles for a net of 4 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 97.8627. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 68.09. 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 68 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 182.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 5 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 3 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 143.240 at 7,177.370. Volume was 14% below average (neutral) and Bollinger Bands were 7% narrower than normal.

Open High Low Close Volume___
7,034.1307,180.7107,033.5707,177.370 683,459,008

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 6,919.43 6,864.87 7,315.78
Volatility: 18 20 16
Volume: 704,601,984 759,320,384 806,516,032

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 1.9% below its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 19 periods.

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