UK FTSE 100 (.FTSE) edges higher despite rising coronavirus death toll

UK FTSE 100 (.FTSE) edges higher despite rising coronavirus death toll

UK FTSE 100 (.FTSE) edges higher despite rising coronavirus death toll

The FTSE 100 has edged higher, tentatively building on a recovery from Monday’s heavy sell-off sparked by fears over the spread of the coronavirus in China.

The UK blue-chip index rose seven points to 7,488, but is still well short of the level traded on Friday, before the sharp sell-off at the beginning of this week.

The coronavirus has already claimed more victims in China than the 2002/3 pandemic of severe acute respiratory syndrome (Sars), with the death toll now having reached 132, according to China’s National Health Commission.

Hong Kong’s Hang Send stock exchange tumbled 2.8% overnight after reopening for the first time since the spread of the coronavirus following the lunar new year break.

The risks posed to the Chinese economy will make the US Federal Reserve’s meeting today even more important, and while the market is not pricing in any cut to interest rates, the emergence of the virus is expected to ensure a cautious outlook.

Crest Nicholson (CRST) rose to the top of the FTSE 250, building on yesterday’s gains to trade 5.2%, or 24p, higher  at 497p. The house builder has been buoyed by a turnaround plan that is targeting improved margins under new chief executive Peter Truscott.

Avast (AVST) fell to the bottom of the index, down 7.9%, or 38p, to 443p after the anti-virus software developer was accused of harvesting customer data and selling it to corporate clients. The group denied the allegations in a blog post, stating it ‘wanted to reassure our users that at no time have we sold any personally identifiable information to a third party’.

There were equally big moves on the Alternative Investment Market (AIM) this morning, with Hurricane Energy (HUR) soaring 13.4%, or 2.9p, to trade at 24p after the oil and gas explorer reported revenue forecasts for 2019 ahead of expectations.

Hurricane chief executive Robert Trice said the group was ‘focused on delivering operational progress, on budget and on schedule, and in doing so delivering returns to shareholders’.

Atalaya Mining (ATYM) was among the AIM fallers, sliding 9.2%, or 19p, to trade at 187p after the Spanish regional government of Xunta de Galicia said the company’s project in the region posed an environmental risk. The metal miner said it was considering appealing the authority’s report.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,659.45.

The projected lower bound is: 7,314.92.

The projected closing price is: 7,487.18.

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 30 white candles and 20 black candles for a net of 10 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 26.1193. This is not an overbought or oversold reading. The last signal was a buy 1 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 45.66. 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 21 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 -114.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 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 17 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 2.880 at 7,483.570. Volume was 25% below average (neutral) and Bollinger Bands were 25% narrower than normal.

Open     High      Low     Close     Volume___
7,480.6907,514.7307,462.2107,483.570 524,375,200
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,558.84 7,462.65 7,366.15
Volatility: 18 15 14
Volume: 583,401,792 665,010,752 712,141,120

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 1.6% above 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 1 periods.

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