UK FTSE 100 (.FTSE) Bank of England will decide on its interest rate Thursday

UK FTSE 100 (.FTSE) Bank of England will decide on its interest rate Thursday

UK FTSE 100 (.FTSE) Bank of England will decide on its interest rate Thursday

Like the Fed, the Bank of England will decide on its interest rate Thursday. While no change is expected, the meeting will accompany an inflation report and commentary on the domestic economy. With Boris Johnson recently elected as the new UK Prime Minister, the odds of a hard-Brexit have increased, and the British Pound has taken note.

With that in mind, the meeting will mark the first official report from the Bank of England under the new Prime Minister and the resultant Brexit situation. Traders will look for remarks on the implications the new Brexit outlook has on the economy. Should the new forecast disappoint, the BOE may express a willingness to pursue accommodative monetary policy alongside the Fed and ECB.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,671.32.

The projected lower bound is: 7,434.62.

The projected closing price is: 7,552.97.

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 27 white candles and 23 black candles for a net of 4 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 35.1069. This is not an overbought or oversold reading. The last signal was a buy 9 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 57.14. 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 15 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 15. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 11 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 60.010 at 7,549.060. Volume was 16% above average (neutral) and Bollinger Bands were 55% narrower than normal.

Open     High      Low     Close     Volume___
7,489.0507,553.5507,486.7407,549.060 799,735,104
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,525.75 7,411.29 7,169.02
Volatility: 10 10 14
Volume: 612,264,576 688,034,688 736,692,864

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 5.3% above 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 0 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.