UK FTSE 100 (.FTSE) rises as Jupiter jumps on Merian takeover

UK FTSE 100 (.FTSE) rises as Jupiter jumps on Merian takeover

UK FTSE 100 (.FTSE) rises as Jupiter jumps on Merian takeover

UK blue-chip stocks made marginal gains after two sessions in the red as China’s handling of the coronavirus epidemic eased fears, while mid-cap Jupiter Fund Management (JUP) rose on news the fund group is buying Merian Global Investors.

In a quiet day for global stock markets, the FTSE 100 was no exception,rising 20 points, or 0.3%, to 7,430.

Neil Wilson, analyst at Markets.com, said Chinese stimulus, in the shape of an interest rate cut, helped to ‘lift the mood’ and investors are expecting further easing to take the sting out of the impact of coronavirus on China’s economy.

‘Markets are betting [the interest rate cut] will be only a part of a wider stimulus programme to offset the economic damage wrought by coronavirus – the People’s Bank of China has already been injecting liquidity and there will no doubt be more to come,’ said Wilson.

Japan has already reported its economy shrunk by 1.6% in the fourth quarter, the fastest contraction in six years, and the Bank of Japan said it was ready to step in if the coronavirus acts as a further drag.  

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,614.06.

The projected lower bound is: 7,262.23.

The projected closing price is: 7,438.15.

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 30 white candles and 20 black candles for a net of 10 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 18.6851. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 46.42. 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 34 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 -15. This is not a topping or bottoming area. The last signal was a buy 9 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 buy 4 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 24.120 at 7,433.250. Volume was 44% below average (neutral) and Bollinger Bands were 10% narrower than normal.

Open     High      Low     Close     Volume___
7,409.1307,449.9507,409.1307,433.250 394,565,728
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,466.89 7,494.22 7,366.11
Volatility: 14 15 15
Volume: 660,821,312 651,627,456 714,530,880

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 0.9% above its 200-period moving average and is in an downward trend. Volatility is high 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 14 periods.

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