UK FTSE 100 (.FTSE) gains reverse as fears of further political turmoil in Italy rise
It was a day of two halves for both currency and equity traders in the UK after the FTSE 100 reversed early gains to end 0.9pc lower at 7,125 points. The mid-cap FTSE 250 also slipped, ending 0.5pc lower at 19,008 points.
Sainsbury’s was the biggest winner of the FTSE 100 after outperforming its “big four” supermarket rivals, albeit by suffering a smaller decline of sales than the others. Its shares added 5.5p, or 3pc, to 193.9p. Screwfix and B&Q owner Kingfisher was the biggest loser, shedding 6.2p, or 3.2pc, to 188p.
Equities across Europe were lower amid political uncertainty, not least in Italy where prime minister Giuseppe Conte said he would resign. The main indices in the US are also trading lower.
The pound went in the opposite direction after comments from Angela Merkel that Europe would think about practical solutions to the current Brexit impasse were interpreted as a chink of light in the stand-off between Downing Street and Brussels. Market reaction to the comments erased sterling’s early losses against the dollar and the euro. The pound rose as high as $1.218 and €1.098 before surrendering some of its gains.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 7,341.44.
The projected upper bound is: 7,295.63.
The projected lower bound is: 6,943.43.
The projected closing price is: 7,119.53.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black 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 46.6977. This is not an overbought or oversold reading. The last signal was a buy 7 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 37.19. 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 9 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 -62. This is not a topping or bottoming area. The last signal was a buy 2 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 12 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -64.650 at 7,125.000. Volume was 7% above average (neutral) and Bollinger Bands were 130% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,186.28 7,421.68 7,192.24
Volatility: 17 15 15
Volume: 725,913,856 713,602,496 734,642,496
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 0.9% below its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on .FTSE and have had this outlook for the last 12 periods.