UK FTSE 100 (.FTSE) Outperforms As Pound Falls After UK PMI

UK FTSE 100 (.FTSE) Outperforms As Pound Falls After UK PMI

UK FTSE 100 (.FTSE) Outperforms As Pound Falls After UK PMI

Concerns over the UK’s economic growth following some subdued service sector data caused the pound to decline on Tuesday, in turn allowing the FTSE 100 to trump its European counterparts.

Also supporting the UK headline stock index were gains for bookmaker GVC Holdings, telecommunications firm Vodafone and private healthcare provider NMC Health.

The FTSE 100 index closed up 49.04 points, or 0.7%, at 7,183.43. The FTSE 250 ended up 31.71 points, or 0.2%, at 19,443.14, and the AIM All-Share closed just 0.49 of a point higher, or 0.1%, at 915.78.

The FTSE 100, comprising a significant number of companies that earn overseas, found support as the pound dipped.

Sterling was quoted at USD1.3137 at the London equities close Tuesday, down compared to USD1.3175 at the close on Monday. Late last week, the pound had traded above the USD1.33 mark. 

Overall, the bias in prices is: Upwards.

The projected upper bound is: 7,368.94.

The projected lower bound is: 7,016.78.

The projected closing price is: 7,192.86.

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 27 white candles and 23 black candles for a net of 4 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 65.1032. This is not an overbought or oversold reading. The last signal was a sell 11 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 58.37. 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 88 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 -0. 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 7 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 49.040 at 7,183.430. Volume was 7% above average (neutral) and Bollinger Bands were 48% narrower than normal.

Open High Low Close Volume___
7,134.3907,191.6507,127.1807,183.430 819,863,680

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 7,151.60 6,975.60 7,269.00
Volatility: 10 16 16
Volume: 803,864,064 690,114,176 790,979,456

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 1.2% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .FTSE at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .FTSE and have had this outlook for the last 39 periods.

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