UK FTSE 100 (.FTSE) blue-chips back off from winning streak
Footsie finished down nearly five points at 7,054.
The FTSE 250 tanked lower- shedding almost 136 points at 19,013.
The pound fell after inflation data showed it had slowed to its lowest level in 18 months in September.
“Pound traders will now turn their attention towards the EU Leaders Summit,” said Fiona Cincotta, at City Index.
“Whilst there is little clarity surround Brexit, what is clear is that no deal has been reached so far..,” she said.
After Theresa May’s address, EU leaders will then decide if there is sufficient momentum to move ahead with the extraordinary summit in November.
“Given recent headlines and the pounds focus on economic data, market expectations are low,” said Cincotta.
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 7,329.80.
The projected upper bound is: 7,198.80.
The projected lower bound is: 6,883.84.
The projected closing price is: 7,041.32.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 34.4990. This is not an overbought or oversold reading. The last signal was a buy 0 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 30.14. 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 buy 1 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 -77. This is not a topping or bottoming area. The last signal was a buy 1 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 8 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -4.800 at 7,054.600. Volume was 10% below average (neutral) and Bollinger Bands were 152% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,149.96 7,415.03 7,466.97
Volatility: 16 14 14
Volume: 841,132,032 750,834,240 818,627,456
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 5.5% 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 5 periods.
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