UK FTSE 100 (.FTSE) breaks lower from rising wedge formation

UK FTSE 100 (.FTSE) breaks lower from rising wedge formation

UK FTSE 100 (.FTSE) breaks lower from rising wedge formation

The FTSE 100 slumped lower yesterday, with the index falling sharply from a rising wedge formation.

This is in line with the wider bearish trend in play since late July. We have seen the price attempt to regain ground overnight, yet that is likely to be a fleeting move. A failure to break through 7183 would be key to signaling further downside. As such, a bearish turn looks likely following this rally into Fibonacci resistance, with a break through 7183 required to start bringing a more bullish short-term picture to the fore.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 7,295.77.

The projected upper bound is: 7,360.99.

The projected lower bound is: 6,952.80.

The projected closing price is: 7,156.89.

Candlesticks

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 22 white candles and 28 black candles for a net of 6 black 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 49.2207. This is not an overbought or oversold reading. The last signal was a buy 2 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 43.04. 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 44 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 -68. This is not a topping or bottoming area. The last signal was a buy 2 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 5 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 23.350 at 7,166.500. Volume was 18% below average (neutral) and Bollinger Bands were 12% wider than normal.

Open     High      Low     Close     Volume___
7,143.1507,196.4107,139.9007,166.500 582,022,720
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,240.89 7,256.05 7,247.15
Volatility: 24 18 15
Volume: 647,588,672 751,372,992 706,944,064

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 1.1% 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 2 periods.

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