UK FTSE 100 (.FTSE) climbs and pound falls ahead of US and China’s trade deal

UK FTSE 100 (.FTSE) climbs and pound falls ahead of US and China’s trade deal

UK FTSE 100 (.FTSE) climbs and pound falls ahead of US and China’s trade deal

The FTSE 100 has risen, gaining a boost from the falling pound, ahead of a trade deal between the US and China set to be signed tomorrow.

The UK blue-chip index rose 29 points, or 0.4%, to 7,646, as companies with overseas earnings were support by the pound’s fresh falls.

Sterling slipped further below the $1.30 mark, dropping 0.2% to $1.297, as investors continued to price in a likely interest rate cut from the Bank of England.

Ahead of the signing of a ‘phase one’ trade deal between the US and China tomorrow, reports emerged China would ramp up US car, aircraft and energy purchases. The US treasury department meanwhile dropped its designation of China as a currency manipulator.

‘Sentiment turned risk-on after the US said it will remove China from its list of currency manipulators,’ said Neil Wilson, chief market analyst at Markets.com.

‘A commitment by China not to engage in competitive devaluations is expected in the trade agreement to be signed this week,’ he added.

‘But just because the US is removing the currency manipulator tag from China doesn’t mean it can’t talk tough on trade later on. This is a truce, not a peace treaty.’

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 7,451.19.

The projected upper bound is: 7,779.40.

The projected lower bound is: 7,480.26.

The projected closing price is: 7,629.83.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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 32 white candles and 18 black candles for a net of 14 white 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 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 73.6218. This is not an overbought or oversold reading. The last signal was a sell 10 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 63.27. 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 10 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 80. This is not a topping or bottoming area. The last signal was a sell 12 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 6 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 4.750 at 7,622.350. Volume was 4% below average (neutral) and Bollinger Bands were 30% narrower than normal.

Open     High      Low     Close     Volume___
7,617.6007,650.6907,588.8107,622.350 697,645,312
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,591.92 7,415.30 7,357.04
Volatility: 8 13 14
Volume: 543,820,672 680,584,704 718,327,104

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 3.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect very strong flows of volume into .FTSE (bullish). Our trend forecasting oscillators are currently bullish on .FTSE and have had this outlook for the last 17 periods.

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