UK FTSE 100 (.FTSE) rallies into key resistance to negate downtrend

UK FTSE 100 (.FTSE) rallies into key resistance to negate downtrend

UK FTSE 100 (.FTSE) rallies into key resistance to negate downtrend

The FTSE 100 has managed to rally into the key 7237 resistance level this week, breaking out from the trend of lower highs that have been in place throughout the past fortnight. That move points towards a heightened possibility that we could have further upside to come going forward.

However, with that break accomplished, there is also a chance we will see a short-term retracement before the pair starts to head higher once more. Watch for a move below 80 on the stochastic to raise expectations of such a pullback. However, unless such a move breaks 7079, it would look like a retracement and precursor to further upside. The chance of a retracement would be negated with a rally through the 7242 level.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 7,252.89.

The projected upper bound is: 7,358.45.

The projected lower bound is: 7,076.59.

The projected closing price is: 7,217.52.

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 25 white candles and 25 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).

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 62.9531. This is not an overbought or oversold reading. 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 44.55. 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 28 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 -37. 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 5 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 5.930 at 7,220.220. Volume was 6% above average (neutral) and Bollinger Bands were 27% narrower than normal.

Open High Low Close Volume___
7,216.7407,259.2407,201.3607,220.220 768,034,048

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

Moving Averages: 10-period 50-period 200-period
Close: 7,229.64 7,327.46 7,160.39
Volatility: 13 12 15
Volume: 804,822,080 717,678,144 754,199,488

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 0.8% above its 200-period moving average and is in an downward trend. Volatility is low 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 21 periods.

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