Home Headline News UK FTSE 100 (.FTSE) hits one-month high; Brexit tussle bogs down midcaps

UK FTSE 100 (.FTSE) hits one-month high; Brexit tussle bogs down midcaps

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UK FTSE 100 (.FTSE) hits one-month high; Brexit tussle bogs down midcaps

Shares in domestically-focused UK firms eased on Wednesday as votes in parliament kept investors guessing on the final timing and shape of Britain’s withdrawal from the European Union, while the blue-chip FTSE 100 touched a near one-month high.

The FTSE 100 climbed 0.7%, hitting its highest since Sept. 25, as oil majors tracked gains in crude prices and miners benefited from a rise in nickel and copper prices.

The blue-chip bourse outperformed its European peers, aided by a rise in shares of BAT after the U.S. FDA authorized Swedish Match to market its snus product as less harmful compared with cigarettes.

The mid-cap index ended flat after spending most of the session in the red as uncertainty around Brexit and its consequences continues to show up in the performance of domestic companies.

Housebuilders, considered among the most vulnerable, were hit as Barratt, Persimmon and Berkeley shed around 2% each while UK-focussed RBS tumbled nearly 3%.

Britain’s parliament accepted a Brexit withdrawal deal in principle on Tuesday but scuttled Prime Minister Boris Johnson’s timetable to legislate on the agreement before a Oct. 31 deadline.

While lawmakers voted for a second hearing on the departure agreement, rejection of Johnson’s timetable raises the likelihood of another delay in Britain’s withdrawal as well as the prospect of a snap election before Christmas.

“The latest twist in the Brexit saga also means that investors may have to contend with more political risk by way of a UK election,” said Han Tan, Market Analyst at FXTM.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 7,281.41.

The projected upper bound is: 7,434.35.

The projected lower bound is: 7,087.53.

The projected closing price is: 7,260.94.

Candlesticks

A white body occurred (because prices closed higher 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 25 white candles and 25 black 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 Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 66.7127. This is not an overbought or oversold reading. The last signal was a buy 12 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 53.16. 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 54 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 160.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 48.250 at 7,260.740. Volume was 3% above average (neutral) and Bollinger Bands were 1% wider than normal.

Open     High      Low     Close     Volume___
7,212.4907,265.8607,194.1307,260.740 764,417,600
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,199.62 7,232.17 7,269.25
Volatility: 9 15 14
Volume: 952,660,928 767,079,936 725,275,520

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.

Summary

FTSE 100 INDEX is currently 0.1% 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.

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