UK FTSE 100 (.FTSE) lower after Brexit talks stall

UK FTSE 100 (.FTSE) lower after Brexit talks stall

UK FTSE 100 (.FTSE) lower after Brexit talks stall

The FTSE 100 index ended in the red on Tuesday as the pound sank after Brexit talks stalled between the UK and EU.

At the close, the UK blue chip index fell 54.7 points at 7,143.15, a 0.8% decline, and the pound lost 0.7% against the dollar to US$1.22.

“The pound has slumped into the lowest level seen in over a month, as the blame game continues amid leaks of a conversation which saw Angela Merkel lay out a plan that involves Northern Ireland remaining within the customs union,” said Joshua Mahoney, senior market analyst at IG.

“If proven correct, these comments point towards a rejection of Johnson’s plans of a customs zone, only to propose an unthinkable plan to split Northern Ireland away from mainland trade deals and standards.

“The big question is whether this is the official stance of the EU, with confirmation essentially pointing towards a likely no-deal Brexit. It looks likely that the electorate will have to decide between a conservative-led no-deal Brexit and a Corbyn-led second referendum; neither of which the markets would take particularly well to,” Mahoney added.

The Footsie wasn’t the only index suffering on Tuesday. Around London’s close, on Wall Street, the Dow Jones Industrial Average was down around 314 points to 26,164, while the broader S&P 500 index dropped 39 points to 2,899, and the tech laden Nasdaq Composite retreated 101 points to 7,856.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 7,298.79.

The projected upper bound is: 7,336.26.

The projected lower bound is: 6,928.30.

The projected closing price is: 7,132.28.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 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 39.6035. This is not an overbought or oversold reading. The last signal was a buy 1 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 41.08. 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 43 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 -77. This is not a topping or bottoming area. The last signal was a buy 1 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 4 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed down -54.730 at 7,143.150. Volume was 3% below average (neutral) and Bollinger Bands were 9% wider than normal.

Open     High      Low     Close     Volume___
7,197.8807,223.8607,143.1507,143.150 691,679,872
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,253.24 7,265.65 7,244.92
Volatility: 23 18 15
Volume: 659,841,536 756,687,616 712,261,376

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 1.4% below 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 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 1 periods.

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