UK FTSE 100 (.FTSE) reports that trade talks between China and the US are going well

UK FTSE 100 (.FTSE) reports that trade talks between China and the US are going well

UK FTSE 100 (.FTSE) reports that trade talks between China and the US are going well

US stocks got off to a flyer, encouraging the Footsie to cement its position above 6,800.

The FTSE 100 was up 122, or 1.82%, at 6,845, while in the US the Dow was up 273 points (1.12%) at 24,693 and the S&P 500 was up 30 points (1.14%) at 2,668 on reports that trade talks between China and the US are going well.

Mining stocks were lending their support to the blue-chip index while, coincidentally, the day’s biggest riser on the stock market was also a mining stock: MC Mining Limited (LON:MCM).

MC Mining soared 37% to 49.25p after the South African Department of Mineral Resources granted a mining right for the company’s 74%-owned Chapudi coking and thermal coal project in the Limpopo province.

In a similar vein, Eurasia Mining plc (LON:EUA) was up 5.6% at 0.665p after it said the official licence certificate regarding the mine permit for Monchetundra has now been delivered to the company.

Overall, the bias in prices is: Downwards

By the way, prices are vulnerable to a correction towards 7,132.77.

The projected upper bound is: 6,988.30.

The projected lower bound is: 6,598.88.

The projected closing price is: 6,793.59.

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 21 white candles and 29 black candles for a net of 8 black 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 22.8990. 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 40.20. 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 31 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 -102.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 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 3 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 85.400 at 6,806.940. Volume was 9% above average (neutral) and Bollinger Bands were 13% wider than normal.

Open High Low Close Volume___
6,721.5406,857.5806,721.5406,806.940 867,256,192

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

Moving Averages: 10-period 50-period 200-period
Close: 6,904.14 7,041.94 7,373.05
Volatility: 25 18 15
Volume: 906,121,408 851,436,736 825,226,240

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 7.7% below 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 3 periods.

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