UK FTSE 100 (.FTSE) Lack of Direction

UK FTSE 100 (.FTSE) Lack of Direction

UK FTSE 100 (.FTSE) Lack of Direction

The pound fell to a two-week low against the dollar sparking a 0.9% jump in the FTSE 100 as markets woke up to the growing risk of a no-deal Brexit.

From yesterday evening sterling has dropped nearly 1% to $1.3138 against the dollar after the Democratic Unionist Party refused to back the prime minister’s withdrawal agreement, nullifying her offer to resign in order to get the deal past hardline Brexiters in her Conservative party.

The political uncertainty was heightened by MPs failing to reach a consensus on any of the eight other Brexit options presented to them last night although the debate is set to continue until Monday.

‘All eyes are therefore likely to fall on the DUP over the next few days as Theresa May attempts to keep her deal alive,’ said Edward Park, deputy chief investment officer at Brooks Macdonald.

‘Our base case is that we will either see a deal cobbled together or a long extension whilst Conservative MPs, and Parliament, face the question of what they can agree on.’

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 7,117.81.

The projected upper bound is: 7,404.41.

The projected lower bound is: 7,080.22.

The projected closing price is: 7,242.32.

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 30 white candles and 20 black candles for a net of 10 white 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 28.0505. This is not an overbought or oversold reading. The last signal was a buy 0 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 54.70. 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 105 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 8. This is not a topping or bottoming area. The last signal was a sell 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 2 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 40.140 at 7,234.330. Volume was 21% below average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
7,194.1907,265.4707,190.8707,234.330 585,601,152

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 7,250.78 7,115.32 7,226.92
Volatility: 16 15 16
Volume: 741,504,256 709,615,040 768,075,328

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% above its 200-period moving average and is in an downward 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 moderate flows of volume into .FTSE (mildly bullish). Our trend forecasting oscillators are currently bearish on .FTSE and have had this outlook for the last 3 periods.

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