Home Stocks FTSE UK FTSE 100 (.FTSE) bounces back from seven-week low, Rynair advances

UK FTSE 100 (.FTSE) bounces back from seven-week low, Rynair advances

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UK FTSE 100 (.FTSE) bounces back from seven-week low, Rynair advances

London’s main share index bounced back from a seven-week low on Monday, as strong U.S. economic data kept in check worries about the coronavirus, but gains for UK-focused midcaps were limited by concerns about the possibility of Britain having no trade deal in place with the EU by the end of the year.

On the first trading day after Britain’s formal departure from the European Union, the FTSE 100 <.FTSE> added 0.6% but the more domestically exposed FTSE 250 <.FTMC> rose just 0.1%.

Data showing an unexpected rebound in U.S. factory activity in January after five consecutive months of contraction offered some confidence to markets that have been plagued by fears of a global slowdown and the coronavirus epidemic.

The FTSE 100 was also supported by exporters such as spirits company Diageo <DGE.L> and HSBC <HSBA.L> as the pound slipped.

Both British benchmark indexes shed more than 3% last month as the outbreak sapped risk appetite.

London-listed shares of Ryanair <RYA.L> jumped 7% on Monday after the Irish carrier raised its annual profit forecast, citing a better-than-expected performance over the holidays.

Shares of blue-chip peer easyJet <EZJ.L> advanced 3%.

But NMC Health <NMC> plunged 20% in the same index, although the reason for the fall was not immediately clear.

The healthcare firm has lost 60% in value after coming under attack from U.S. shortseller Muddy Waters late last year.

Among midcaps, Future <FUTR.L> gained 4.1% after the publisher forecast its full-year results to be materially ahead of market expectations. Small-cap peer Reach Plc <RCH.L> also rose more than 6%.

A notable loser was payments firm Finablr <FINF.L>, which gave up almost 8%. Its unit Travelex said on Friday it had partially restored its UK website, more than a month after a crippling ransomware attack.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 7,508.86.

The projected lower bound is: 7,146.32.

The projected closing price is: 7,327.59.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 10.3683. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 37.65. 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 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 -137.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 6 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 20 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 40.300 at 7,326.310. Volume was 8% below average (neutral) and Bollinger Bands were 28% wider than normal.

Open     High      Low     Close     Volume___
7,286.0107,359.9807,285.1607,326.310 645,839,808
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,464.69 7,464.66 7,364.24
Volatility: 20 16 14
Volume: 631,399,232 662,217,664 713,185,856

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 0.5% 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 4 periods.

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