UK FTSE 100 (.FTSE) rallies on election hopes and China stimulus
Election hopes continued to support UK shares as the FTSE 100 rallied, helped by safety technology company Halma (HLMA) soaring to the top of the index.
The blue-chip index jumped 96 points, or 1.3%, to trade at 7,403 as prime minister Boris Johnson and opposition leader Jeremy Corbyn prepare to go head-to-head in a televised debate this evening. A Conservative victory at next month’s general election is being priced into markets as the party maintains a 10% to 17% lead in the polls.
Global markets were unperturbed by ongoing trade tensions between the US and China, ignoring speculation that Beijing is pessimistic about a deal as US president Donald Trump’s is reluctant to roll-back existing tariffs. The focus was instead on the People’s Bank of China’s decision to cut the lending rate for the first time since 2015.
David Madden, analyst at CMC Markets, said the cut wasn’t deep but it was politically important.
‘It is hardly surprising the Chinese authorities altered monetary policy at a time when it is locked in trade dispute with the US,’ he said. ‘It was Beijing’s way of letting the US know they can fend them off in the trade battle with one hand, while tweaking monetary policy with the other.’
Halma shot to the top of the FTSE 100 after a reporting record half-year results. The shares rose 11.8%, or 225p, to trade at £21.23 as it reported a 14% rise in pre-tax profit to £128.8 million in the six months to the end of September, and revenues up 12% to £653.7 million. The group, which makes products for hazard detection, increased its dividend 7% to 6.54p per share.
Election confidence continued to buoy the FTSE 250, whose ‘mid-cap’ constituents are typically more exposed to the domestic economy. The index rose 1.1%.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 7,300.54.
The projected upper bound is: 7,481.00.
The projected lower bound is: 7,168.84.
The projected closing price is: 7,324.92.
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.
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).
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 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 45.0508. This is not an overbought or oversold reading. The last signal was a sell 7 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 51.91. 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 73 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 11. This is not a topping or bottoming area. The last signal was a sell 7 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 3 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 16.100 at 7,323.800. Volume was 19% below average (neutral) and Bollinger Bands were 55% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,343.48 7,287.69 7,309.35
Volatility: 7 14 13
Volume: 687,576,640 756,293,760 724,457,664
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 0.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .FTSE and have had this outlook for the last 15 periods.
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