UK FTSE 100 (.FTSE) falls in broad-based sell-off on trade fears

UK FTSE 100 (.FTSE) falls in broad-based sell-off on trade fears

UK FTSE 100 (.FTSE) falls in broad-based sell-off on trade fears

The FTSE 100 has fallen into the red amid a broad-based sell-off after US president Donald Trump said he would hike tariffs if no trade deal is reached with China.

The UK blue-chip index fell 73 points, or 1%, to 7,251, with only a handful of stocks escaping the red.

Speaking at a cabinet meeting, Trump threatened to escale the trade spat with China. ‘If we don’t make a deal with China, I’ll just raise the tariffs even higher,’ he said.

Shayne Heffenan, CEO and Founder of Heffx, said: ‘Though hardly a surprising comment – it’s ripped straight from the Trump playbook – combine it with the reports that Beijing is feeling increasingly pessimistic, and the blunt fact that nothing has been signed yet… and it’s understandable that investors would have their concerns.’

Trade tensions overshadowed last night’s political showdown between prime minister Boris Johnson and opposition leader Jeremy Corbyn. Polls conducted after the televised head-to-head showed no decisive winner. The pound moved off its lowest level of the day during the debate but there was no lasting move. Sterling was down 0.2% against the dollar this morning at $1.29.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,416.36.

The projected lower bound is: 7,105.59.

The projected closing price is: 7,260.98.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 38.2105. This is not an overbought or oversold reading. The last signal was a sell 8 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 45.13. 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 74 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 -134.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 4 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed down -61.310 at 7,262.490. Volume was 9% above average (neutral) and Bollinger Bands were 55% narrower than normal.

Open     High      Low     Close     Volume___
7,323.8007,323.8007,219.1107,262.490 814,228,928
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,330.07 7,286.18 7,309.80
Volatility: 8 14 13
Volume: 708,816,128 755,995,968 725,438,848

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 0.6% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 16 periods.

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