UK FTSE 100 (.FTSE) down but currency remains flat
The index tracking the UK’s largest companies had lost its earlier gains and had dropped to -0.02% as the Chancellor began speaking, and while turbulent throughout the speech, even poking its head into positive territory at +0.2%, the overall trend was downwards and it currently resides at -0.51% at time of writing.
UK 10 year gilts dropped slightly in the wake of the Budget, offering a yield of 0.26% as opposed to its 0.3% before the Chancellor began speaking.
Currency markets remained flat, with sterling up a mere 0.01% against the dollar to 1.2943, 0.11% against the Japanese Yen at 135.603, and less than a basis point on the Euro, up only 0.008% to 1.14165, at the time of writing.
Technical Indicators
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 6,994.88.
The projected upper bound is: 6,171.89.
The projected lower bound is: 5,514.51.
The projected closing price is: 5,843.20.
Candlesticks
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 23 white candles and 27 black candles for a net of 4 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 5.4654. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 6 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 17.20. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 5 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 -154.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 16 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -83.710 at 5,876.520. Volume was 94% above average (neutral) and Bollinger Bands were 340% wider than normal.
Open High Low Close Volume___
5,960.2306,088.5005,860.7505,876.5201,506,328,192
Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 6,453.62 7,274.08 7,325.77
Volatility: 53 31 21
Volume: 1,521,212,032 834,726,272 753,870,912
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 19.8% 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 moderate flows of volume out of .FTSE (mildly bearish). Our trend forecasting oscillators are currently bearish on .FTSE and have had this outlook for the last 31 periods. Our momentum oscillator is currently indicating that .FTSE is currently in an oversold condition.
