UK FTSE 100 (.FTSE) falls for 6th straight day
London’s FTSE 100 closed sharply lower on Tuesday, its sixth straight session in the red, bringing its losses to more than 5% since U.S. President Donald Trump announced more tariffs on Chinese exports, while poor results sent Rolls-Royce tumbling.
The FTSE 100 , which suffered its worst day this year in the last session, lost 0.7% to end the session below its 200-day moving average – seen as a technical support level – for the first time since late May.
Until last week’s renewed escalation of the trade tensions, the FTSE 100 had recovered from a slump in May to post back-to-back monthly gains, helped by a fall in the pound that benefits many of its internationally-focussed constituents.
The latest trade friction has erased all of the index’s July gains and has placed the index on course for its steepest monthly fall in four years.
“We should expect things to get worse before they get better. There is likely a bit more pain ahead, but I feel the market will eventually turn around,” Wilson said.
On the FTSE 250, industrial group Rotork jumped 8% after half-year results that Jefferies called “very robust”, while engineering firm Meggitt advanced 3% after it raised its annual organic revenue growth forecast.
Fashion retailer Boohoo added 4.1% after sealing a deal to buy the online businesses of fashion chains Karen Millen and Coast.
Fertilizer maker Sirius Minerals , however, slumped nearly 29% to a more than four-year low after it suspended a planned $500 million bond sale central to the funding of its Polyhalite mining project in the north-east of England.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 7,337.16.
The projected lower bound is: 7,002.33.
The projected closing price is: 7,169.74.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 25 white candles and 25 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 2.7785. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 16 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 29.59. 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 sell 22 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 -247.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 2 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -52.160 at 7,171.690. Volume was 15% above average (neutral) and Bollinger Bands were 57% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,484.72 7,435.43 7,184.44
Volatility: 23 14 15
Volume: 886,990,848 707,650,368 741,639,040
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.
FTSE 100 INDEX is currently 0.2% 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. Our momentum oscillator is currently indicating that .FTSE is currently in an oversold condition.
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