UK FTSE 100 (.FTSE) higher but investors are still fearful of long-term impact
London stock markets opened slightly up this morning amid faint hopes that the worst of the coronavirus outbreak may have now passed for China.
The FTSE 100 index of Britain’s biggest companies rose 35 points or 0.63 per cent to 5,489 in early trading today, although investors are still fearful of the long-term impact of the pandemic and lockdown.
It followed a sharp drop on Wall Street yesterday as the infection rate fast approaches one million amid a rising US death toll. The Dow Jones Industrial Average lost 4.4 per cent or 974 points to close at 20,944 in New York yesterday.
Traders across the world are also concerned that countries are being forced to tighten already strict lockdown measures aimed at containing the virus.
But China and South Korea have shown signs of controlling the virus, reporting falling numbers of new cases, although progress remains fragile.
And the World Health Organization said the global case count will reach 1 million and the death toll 50,000 in the next few days. It currently stands at 46,906.
It follows the FTSE sliding 3.8 per cent or 217 points yesterday to close down at 5,455 – after two days of gains earlier this week and a 6 per cent rise last week.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 5,955.08.
The projected lower bound is: 4,892.41.
The projected closing price is: 5,423.75.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 25 white candles and 25 black candles.
An inverted hammer occurred. If this occurs during a downtrend (which appears to be the case with FTSE 100 INDEX) it implies a reversal. Look for a confirmation of the reversal on the bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend the long upper shadow indicates that the bears are gaining control and a top may occur.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 38.4876. This is not an overbought or oversold reading. The last signal was a sell 3 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 40.33. 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 7 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 34. This is not a topping or bottoming area. The last signal was a buy 10 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 6 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 10.040 at 5,464.610. Volume was 86% below average (consolidating) and Bollinger Bands were 64% 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: 5,479.98 6,562.80 7,169.86
Volatility: 76 58 32
Volume: 1,518,505,472 1,189,308,416 829,523,008
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 23.8% 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 moderate flows of volume out of .FTSE (mildly bearish). Our trend forecasting oscillators are currently bearish on .FTSE and have had this outlook for the last 47 periods.
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