UK FTSE 100 (.FTSE) recovery rally gathering strength
The FTSE 100 has rebounded from yesterday’s heavy sell-off, as a recovery rally gathered strength during the day.
The UK blue-chip index closed 69 points, or 0.9% higher at 7,481, with stocks gaining a boost from a strong market open in the US. The Dow Jones rose 0.8% while the broader S&P 500 index was up 1.1%.
That has helped to claw back some of the heavy losses for stock markets yesterday, amid fears over the spread of the coronavirus in China.
‘Stock markets in Europe have pulled back some of the ground that was lost yesterday,’ said David Madden, market analyst at CMC Markets UK.
‘The positive move in equities is probably due to short covering plus bargain hunting as the health crisis has deepened,’ he added.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 7,656.74.
The projected lower bound is: 7,312.16.
The projected closing price is: 7,484.45.
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 30 white candles and 20 black candles for a net of 10 white candles.
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 27.6167. This is not an overbought or oversold reading. The last signal was a buy 0 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 45.42. 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 20 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 -185.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 16 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 68.640 at 7,480.690. Volume was 25% below average (neutral) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,574.76 7,459.04 7,365.92
Volatility: 18 15 14
Volume: 604,021,120 669,932,672 713,111,488
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.
FTSE 100 INDEX is currently 1.6% above 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 0 periods.