UK FTSE 100 (.FTSE) mood remained wary and dull earnings updates kept a lid on gains
Britain’s FTSE 100 ended higher on Wednesday as investors welcomed indications from Washington that it and Beijing could be closer to a trade deal, though the mood remained wary and dull earnings updates kept a lid on gains.
The main index inched 0.2 percent higher, also boosted by oil stocks after data showed a surprise draw in U.S. crude inventories.
The FTSE 250 was up 0.3 percent, helped by gains in industrial and oil stocks.
World markets saw an uptick after the U.S. said it had received an indication that Beijing wanted to make a trade deal. Washington earlier announced it would raise tariffs on $200 billion worth of Chinese imports.
Investors had remained wary all session as trade concerns dominated. Reuters sources said a draft agreement was riddled with reversals by China that undermined core U.S. demands, backing claims that China had backtracked on almost all aspects of the deal.
China’s commerce ministry said late on Wednesday it would retaliate if the tariff hikes went ahead.
“Stock markets are again tied to headlines… just like the dark days of earlier in the trade war, on the watch for signs that worst-case scenarios can be avoided,” Cityindex analyst Ken Odeluga said.
Wednesday’s earnings updates kept any optimism in check.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 7,401.87.
The projected lower bound is: 7,143.83.
The projected closing price is: 7,272.85.
A white body occurred (because prices closed higher 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 28 white candles and 22 black candles for a net of 6 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 18.2564. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 39.00. 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 sell 9 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 -199.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 period(s) ago.
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 up 10.530 at 7,271.000. Volume was 20% above average (neutral) and Bollinger Bands were 27% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,384.16 7,302.90 7,199.15
Volatility: 10 11 15
Volume: 674,870,784 720,369,216 752,734,848
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.
FTSE 100 INDEX is currently 1.0% 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 out of .FTSE (mildly bearish). Our trend forecasting oscillators are currently bearish on .FTSE and have had this outlook for the last 2 periods.