UK FTSE 100 (.FTSE) gains have been supported by a landslide victory for Prime Minister Boris Johnson in the British national election
The FTSE 100 .FTSE was up by 0.4%, rising for the seventh straight session. Its gains have been supported by a breakthrough on a U.S.-China trade deal and a landslide victory for Prime Minister Boris Johnson in the British national election.
The euphoria around Boris Johnson’s win carried into this week but was soon overshadowed by fears of a chaotic Brexit after the government set a hard deadline of December 2020 to reach a new trade deal with the European Union.
That pushed sterling to two-week lows, helping blue-chip companies with a big international presence, such as Unilever (ULVR.L) and AstraZeneca (AZN.L), rise. The midcap index .FTSE ended relatively flat after hitting all-time highs earlier this week.
A Bank of England meeting failed to deliver any surprises, leaving traders to look ahead to a parliamentary vote on Johnson’s Brexit deal on Friday.
It was a quiet day on the corporate news front but Just Eat (JE.L) shares saw some action, ending 1.2% higher after Prosus NV (PRX.AS) and Takeaway.com (TKWY.AS) served up their final offers for the British online food delivery group.
The Amsterdam-listed companies increased their bids, with Prosus offering 800 pence a share and Takeaway.com raising its all-share offer which values Just Eat at 916 pence per share based on its closing price on Wednesday.
Just Eat fell sharply after Prosus’ announcement, before recovering to trade higher and touch a near one-and-half year high following Takeaway.com’s revised offer.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 7,345.92.
The projected upper bound is: 7,737.04.
The projected lower bound is: 7,426.10.
The projected closing price is: 7,581.57.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 95.6454. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 68.66. 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 buy 95 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 132.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 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 buy 4 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 33.070 at 7,573.820. Volume was 12% below average (neutral) and Bollinger Bands were 50% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,368.94 7,309.10 7,328.29
Volatility: 14 14 14
Volume: 877,538,240 782,743,040 734,184,640
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 3.4% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .FTSE (mildly bullish). Our trend forecasting oscillators are currently bullish on .FTSE and have had this outlook for the last 2 periods.
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