UK FTSE 100 (.FTSE) rallies as Trump tweets US close to ‘big deal’ with China

UK FTSE 100 (.FTSE) rallies as Trump tweets US close to ‘big deal’ with China

UK FTSE 100 (.FTSE) rallies as Trump tweets US close to ‘big deal’ with China

The FTSE 100 has followed global stock markets higher after US president Donald Trump tweeted a trade deal with China was ‘very close’.

The UK blue-chip index closed 57 points, or 0.8%, higher at 7,273 while in the US, the S&P 500 rose to a record high before paring gains, trading 0.5% higher on the day.

The pound has fallen as voting gets underway in the general election, after the latest poll showed a narrowing of the Conservatives’ lead over Labour.

Sterling, which had been trading higher against the dollar, fell to $1.317 against the greenback, 0.2% lower on the day.

The FTSE 100 rose 36 points, or 0.5%, to 7,253, buoyed by forecasts from the US Federal Reserve that interest rates would stay on hold for the next year.

‘While it has been no surprise to see the Federal Reserve hold interest rates steady as they await data to force their hand, watching them going forward into 2020 will be interesting,’ said Shayne Heffernan, CEO and Founder of Heffx.

‘In our view the Fed should and is likely to ease further next year, but ultimately anything can change in what will be a turbulent election year in the US.’

Investors are also eyeing signs of any progress in trade negotiations between the US and China as Sunday’s deadline for the introduction of fresh US tariffs on Chinese goods looms.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 7,289.37.

The projected upper bound is: 7,420.08.

The projected lower bound is: 7,134.70.

The projected closing price is: 7,277.39.

Candlesticks

A white body occurred (because prices closed higher 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 29 white candles and 21 black candles for a net of 8 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 72.4502. This is not an overbought or oversold reading. The last signal was a buy 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 49.70. 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 90 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 -13. This is not a topping or bottoming area. The last signal was a buy 4 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 57.220 at 7,273.470. Volume was 1% below average (neutral) and Bollinger Bands were 8% narrower than normal.

Open     High      Low     Close     Volume___
7,216.2507,307.3607,216.0807,273.470 727,080,192
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,229.46 7,275.83 7,319.62
Volatility: 17 13 14
Volume: 710,051,840 737,257,152 725,870,784

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 0.6% below its 200-period moving average and is in an downward trend. Volatility is 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 7 periods.

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