UK FTSE 100 (.FTSE) optimism around the British election supports the mid-cap index

UK FTSE 100 (.FTSE) optimism around the British election supports the mid-cap index

UK FTSE 100 (.FTSE) optimism around the British election supports the mid-cap index

London’s FTSE 100 ended a four-day losing run on Wednesday as a report that the United States and China were moving closer to a trade deal lifted demand for risky assets, while optimism around the British election supported the mid-cap index.

Markets rallied in a flurry after Bloomberg reported that Washington and Beijing were close to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal.

The main index rose 0.4%, boosted by Asia-exposed HSBC and miners, as the report helped offset pessimism from U.S. President Donald Trump’s earlier comments that hinted at a delay.

Trump said on Tuesday that a deal with Beijing might have to wait until after the U.S. presidential election in November 2020 and separately threatened to impose tariffs on France and the European Union.

Meanwhile, hopes of a Conservative majority in the Dec. 12 election helped blue-chip firms with more exposure to Britain such as housebuilders to advance, and the FTSE 250 surged 0.7%.

The pound and domestic stocks have rallied in recent weeks on hopes that Prime Minister Boris Johnson’s Conservative Party will secure a majority in next week’s election and push Brexit through. Several opinion polls have also bolstered those hopes.

Sterling jumped above $1.31 for first time in seven months, causing exporter firms to dip. That left the FTSE 100 trailing the broader European benchmark and Wall Street.

News-driven moves were in short supply and limited to smaller stocks.

AIM-listed M&C Saatchi tanked 47% to its lowest in more than a decade after the ad agency warned on annual profit for the second time in less than three months.

Fast-fashion retailer QUIZ skidded 7.3% after its half-year earnings plunged, another reminder of sluggish demand that the UK retail sector is grappling with.

By contrast, Stock Spirits added 9.3% on its best day since August, after its annual profit more than doubled on strong demand for its premium brand vodka in Poland and the Czech Republic.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 7,360.15.

The projected lower bound is: 7,012.79.

The projected closing price is: 7,186.47.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 11.1394. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 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 39.62. 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 84 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 -153.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 1 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 29.740 at 7,188.500. Volume was 9% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open     High      Low     Close     Volume___
7,158.7607,190.0407,139.9107,188.500 688,009,216
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,319.07 7,284.46 7,317.36
Volatility: 16 15 14
Volume: 713,772,352 737,741,248 730,452,544

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 1.8% 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.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.