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UK FTSE 100 (.FTSE) markets perked up on the potential of a Brexit deal for the UK

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UK FTSE 100 (.FTSE) markets perked up on the potential of a Brexit deal for the UK

FTSE 100 index closed higher on Thursday as markets perked up on the potential of a Brexit deal for the UK.

The blue-chip benchmark gained 14.37 points on the day to close at 7,182.32, but off the session high of 7,237.78. FTSE 250 also gained, up around 33 points at 20,221.

“They all said it couldn’t be done, but it has. Boris Johnson has succeeded in getting, in double-quick time, a new deal with the EU,” said Chris Beauchamp, chief market analyst at spreadbetter IG Index.

The analyst went on, however, to note that there would be “ample criticism” of the fledgling deal and analysis “could well show it is not as good in some respects as May’s deal”.

“Whether it passes Parliament at home is another matter entirely, and the various factions in the House of Commons will no doubt seek to make as many amendments as possible, but for the first time in months a way forward for the UK and EU exists,” he said. But  he added: “We have a deal, but the future is far from certain.”

The pound surged after the news but eased back. It is up 0.09% against the US dollar.

On Wall Street, stocks were higher after the open but have come off the boil. The Dow Jones Industrial Average shed around 19 points, while the S&P 500 gained 2,68 points and the Nasdaq added over 13.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 7,285.26.

The projected upper bound is: 7,357.49.

The projected lower bound is: 7,006.49.

The projected closing price is: 7,181.99.

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 24 white candles and 26 black candles for a net of 2 black candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 44.6698. This is not an overbought or oversold reading. The last signal was a buy 8 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 45.07. 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 50 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 -16. This is not a topping or bottoming area. The last signal was a buy 8 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 0 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 14.370 at 7,182.320. Volume was 53% above average (neutral) and Bollinger Bands were 7% wider than normal.

Open     High      Low     Close     Volume___
7,167.9507,237.7807,162.0407,182.3201,126,092,544
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,187.17 7,236.76 7,262.39
Volatility: 11 15 14
Volume: 865,239,808 758,353,408 723,723,072

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 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 8 periods.

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