UK FTSE 100 (.FTSE) higher on renewed hopes an initial Sino-U.S. trade deal may be clinched this year
Britain’s FTSE 100 rose on Monday on renewed hopes an initial Sino-U.S. trade deal may be clinched this year while further signs the Conservatives are set to win an election next month drove mid-caps to their highest since September 2018.
The main index .FTSE climbed 1%, boosted by miners .FTNMX1770 and Asia-focused financial stocks HSBC (HSBA.L) and Prudential (PRU.L) after the U.S. national security adviser said a preliminary trade deal was possible this year.
The index, which jumped more than 1% in the previous session, was also supported by a 3% gain in Burberry (BRBY.L) after rival LVMH (LVMH.PA) agreed to buy U.S. jeweller Tiffany (TIF.N) for $16.2 billion.
The more domestically-focussed FTSE 250 .FTMC rose 1.1%, in tandem with sterling after opinion polls showed the Conservatives were still favourites to win the Dec. 12 election, raising the likelihood of Brexit happening.
The mid-cap index has gained 2.5% since Oct. 29, when parliament approved Prime Minister Boris Johnson’s call for an election, and hit its highest since Sept. 4, 2018.
Despite a firmer pound, the exporter-heavy FTSE posted gains as Sino-U.S. trade sentiment was boosted by China’s assurance of stronger protections for intellectual property, which analysts have identified as a key factor in trade talks.
“The move suggests that key concessions are being made in order to increase the prospects of a partial U.S.-China deal, which is giving investors another opportunity to capitalise on risk-on trading activity,” FXTM analyst Han Tan said.
IAG (ICAG.L) rose 2% after British Airways and its pilots union BALPA reached a preliminary agreement to end the pay dispute that resulted in the first walkout by pilots in the airline’s history.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 7,559.14.
The projected lower bound is: 7,236.43.
The projected closing price is: 7,397.79.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 26 white candles and 24 black candles for a net of 2 white 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 59.4862. This is not an overbought or oversold reading. The last signal was a sell 11 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 58.60. 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 77 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 75. This is not a topping or bottoming area. The last signal was a buy 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 sell 7 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 69.480 at 7,396.290. Volume was 24% below average (neutral) and Bollinger Bands were 46% 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: 7,316.80 7,284.74 7,313.14
Volatility: 12 14 13
Volume: 685,346,112 739,057,216 725,472,256
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 1.1% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 19 periods.