UK FTSE 100 (.FTSE) equities got a lift from the pound’s downturn and from buoyant miners

UK FTSE 100 (.FTSE) equities got a lift from the pound’s downturn and from buoyant miners

UK FTSE 100 (.FTSE) equities got a lift from the pound’s downturn and from buoyant miners

The FTSE 100 made the expected solid start to the week as the pound took a tumble, bolstered as well by strength in commodity plays. 

in early trading, the blue-chip index was up 56 points (0.8%) at 7,160, with just half a dozen of the index’s constituents in the red.

Sterling has just about poked its head back above the US$1.30 but the pound is still taking a battering ahead of this week’s big Brexit vote in the House of Commons.

“These votes will decide the future course of Brexit. Theresa May is not expected to achieve the numbers required to push her Brexit deal through Parliament, after she failed to obtain legally binding adjustments to the Irish backstop arrangement that Parliament requested,” explained Jasper Lawler at LCG.

“With Theresa May’s deal now an almost certain failure, pound traders are concerned about what actually comes next. A delay is looking like the most likely outcome. The sell-off in the pound shows that continued uncertainty for UK businesses, caused by a delay is nothing to cheer,” he added.

That being said, the multi-national companies in the Footsie, many of which earn large chunks of their revenue in foreign currencies, are utterly sanguine about the prospect of a weaker pound.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,348.86.

The projected lower bound is: 7,021.78.

The projected closing price is: 7,185.32.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 51.3064. This is not an overbought or oversold reading. The last signal was a sell 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 55.93. 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 92 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 3. This is not a topping or bottoming area. The last signal was a buy 5 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 11 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 72.160 at 7,176.470. Volume was 89% below average (consolidating) and Bollinger Bands were 51% narrower than normal.

Open High Low Close Volume___
7,104.3107,177.2307,104.3107,176.470 86,158,424

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 7,139.19 7,013.77 7,257.83
Volatility: 11 15 16
Volume: 725,234,240 675,873,920 782,043,328

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 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 volume flowing into and out of .FTSE at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .FTSE and have had this outlook for the last 43 periods.

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