UK FTSE 100 (.FTSE) gains on firm oil prices
UK stocks started the week on a positive note with the FTSE 100 index of leading stocks jumping 0.4% to 7,313. Firmer oil prices and a dip in the pound seem to be the main upside drivers.
Shares in oil majors BP (BP.P) and Royal Dutch Shell (RDSB) both added 1.3% to 507p and £22.88 respectively. Crude prices gained on hopes that the new Saudi Arabian energy minister would continue the country’s policy of restricting its oil production.
Housebuilder Berkeley (BKG) built on Friday’s post-results gains, adding another 0.8% to a new 12-month high of £40.12, while smaller housebuilder Bellway (BWY) added another 0.4% to a three-month high of £30.37.
Shares in shopping centre-owner Intu Properties (INTU) rallied 13% to 41.2p on reports of bid interest from private equity firm Orion Capital.
Intu shares have been trading at nearly a 70% discount to net asset value as the retail property sector struggles with insolvencies and company voluntary agreements.
Retailer and food producer Associated British Foods (ABF) was the biggest loser on the FTSE 100, down 3.2% to £22.79 after its pre-close trading update reveals like-for-like sales at its Primark unit fell 2% for the 12 months to mid-September.
Despite a strong performance from new Primark stores in Europe, like-for-like sales on the continent were down 3% due a weak performance in Germany. The company has moved to strengthen management and initiate ‘focused marketing’ to get sales back on track.
Shares in International Consolidated Airlines (IAG) fell 2.2% to 420p after pilots at its British Airways subsidiary begin a two-day strike over pay and conditions.
Up to 4,000 pilots are involved in the dispute which has resulted in thousands of flights being cancelled and which could cost British Airways up to £40m a day in lost revenue.
High street lender Lloyds (LLOY) was another big FTSE loser, the shares dropping 2% to 49p after the bank suspended its share buyback due to much higher PPI claims than expected.
Instead of 190,000 claims a week in the period leading up to the deadline, the bank says it received between 600,000 and 800,000 claims a week.
Not all of the claims may be valid but to be on the safe side Lloyds is taking extra provisions of between £1.2bn and £1.8bn on top of the £650m it took in the first half and its £1bn of unused provisions.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 7,417.71.
The projected lower bound is: 7,046.32.
The projected closing price is: 7,232.01.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
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 47.8605. This is not an overbought or oversold reading. The last signal was a sell 2 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 48.17. 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 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 56. This is not a topping or bottoming area. The last signal was a sell 1 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 8 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -46.530 at 7,235.810. Volume was 11% above average (neutral) and Bollinger Bands were 18% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,224.65 7,371.13 7,202.11
Volatility: 10 16 15
Volume: 689,022,016 694,176,320 723,990,656
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 0.5% above 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 0 periods.