UK FTSE 100 (.FTSE) investors rushed to sell-off risky assets

UK FTSE 100 (.FTSE) investors rushed to sell-off risky assets

UK FTSE 100 (.FTSE) investors rushed to sell-off risky assets

London’s FTSE 100 was pushed into the red today by several heavyweight stocks that traded without dividend entitlement, while gains in gambling firm GVC and trading platform Plus500 helped the mid-cap index outperform.

The FTSE 100 shed 0.3 per cent, as worries of an imminent recession also remained after a steep dive in long-term US and UK government bonds yields. The FTSE 250 added 0.4 per cent by 0736 GMT.

Stocks trading ex-dividend shaved almost 30 points off the FTSE 100, with the likes of Shell, HSBC, Standard Life Aberdeen, Evraz and Phoenix Group all falling.

Both UK indexes had incurred sharp losses in the previous session as investors rushed to sell-off risky assets after 10-year bond yields fell below two-year equivalents for the first time since the financial crisis.

In news-driven moves, online trading platform Plus500 surged 9.2 per cent to a four-month high after its chief executive officer and some other directors bought shares of the company.

“That directors should buy stock has been a key piece of investor feedback and is therefore notably responsive, especially taken with the recent buyback and new distribution policy,” Liberum analysts wrote.

GVC gained 3.7 per cent after the Ladbrokes owner raised its annual core profit forecast after a better-than-expected performance in its UK retail business in the first half of the year.

Shares of blue-chip consumer goods stocks such as BAT and Imperial Brands eked out gains, suggesting that some defensive buying could be at play.

“While yield curve inversion was a definite sell signal, stocks can have a pump after these events, especially defensive sectors like utilities or consumer staples,” Wilson said. 

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 7,348.07.

The projected upper bound is: 7,237.42.

The projected lower bound is: 6,888.89.

The projected closing price is: 7,063.15.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

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 28.4891. This is not an overbought or oversold reading. The last signal was a buy 4 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 30.04. 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 6 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 -103.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed down -80.870 at 7,067.010. Volume was 13% above average (neutral) and Bollinger Bands were 128% wider than normal.

Open     High      Low     Close     Volume___
7,147.8807,148.7507,020.2207,067.010 806,736,320
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,223.36 7,435.17 7,191.76
Volatility: 22 15 15
Volume: 838,993,152 708,230,208 738,506,304

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 1.7% 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 9 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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