UK FTSE 100 (.FTSE) lower as oil majors and Asia-exposed financials fell on China growth worries
London’s exporter-heavy FTSE 100 inched lower on Monday as oil majors and Asia-exposed financials fell on China growth worries and as the pound strengthened, while a 72% slump in Tullow Oil single-handedly dragged down midcaps.
The blue-chip index was gave up 0.1%, with its dollar earners including spirits company Diageo and pharmaceutical giant AstraZeneca taking a hit from gains in sterling ahead of UK general election later this week.
The FTSE 250 midcap index was also down by the same level, with Tullow Oil recording its steepest one-day fall since early 2004 after the oil and gas explorer scrapped dividend and announced the exit of its CEO.
While signs of progress in the trade negotiations lifted the FTSE 100 to its biggest one-day gain since July on Friday, the bourse still marked its steepest weekly fall after contradictory messages from U.S. President Donald Trump earlier on.
“More soothing noises on the negotiations emerged from Washington D.C. on Friday, but one gets the sense that this Sunday’s next round of tariffs on China is no longer the line in the sand it once was perceived to be,” Halley said.
On Monday, some of Britain’s more domestically-exposed firms such as Lloyds and Barclays outperformed as investors bet on the Boris Johnson-led Conservatives to win the election this week and deliver Brexit.
Technical Indicators
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 7,294.87.
The projected upper bound is: 7,405.57.
The projected lower bound is: 7,055.26.
The projected closing price is: 7,230.41.
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 27 white candles and 23 black candles for a net of 4 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 30.5168. 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 45.51. 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 87 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 -45. 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 -5.760 at 7,233.900. Volume was 16% below average (neutral) and Bollinger Bands were 10% narrower than normal.
Open High Low Close Volume___
7,239.6607,255.7307,217.8007,233.900 619,393,856
Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,284.05 7,272.97 7,317.77
Volatility: 16 15 14
Volume: 713,370,624 734,586,560 728,613,568
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 1.1% 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 4 periods.
UK FTSE 100 (.FTSE) lower as oil majors and Asia-exposed financials fell on China growth worries added by HEFFX on
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