UK FTSE 100 (.FTSE) still plenty of investor unease over the state of the global economy

UK FTSE 100 (.FTSE) still plenty of investor unease over the state of the global economy

UK FTSE 100 (.FTSE) still plenty of investor unease over the state of the global economy

FTSE 100 closed higher on Wednesday, reversing yesterday’s loss, but there was still plenty of investor unease over the state of the global economy.

Britain’s blue-chip benchmark closed up around 23 points on the day at 7,195. Yesterday, it fell over 52 points.

The mid-cap FTSE 250 also moved higher, adding nearly 100 points to finish at 18,945.

The weaker pound also gave a little support to Footsie’s US dollar earning constituents, with cable down 0.08% against the greenback..

“Central banks in New Zealand, Thailand, and India all cut rates overnight and that highlights how concerned central bankers are about the state of the global economy,” noted David Madden, at CMC Markets.

The market analyst highlighted that after the US Federal Reserve cut interest rates last month, there remains speculation of a further loosening of policy coming down the track.

On Wall Street on Wednesday, a drop-in bond yields caused stocks to fall, underlining tensions traders have over the US trade dispute with China.

The Dow Jones Industrial Average was down over 367 points, while the Nasdaq exchange shed 61 points.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 7,363.08.

The projected lower bound is: 7,034.86.

The projected closing price is: 7,198.97.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 4.9738. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 17 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 32.08. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -167.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 27.010 at 7,198.700. Volume was 6% above average (neutral) and Bollinger Bands were 78% wider than normal.

Open     High      Low     Close     Volume___
7,171.6907,237.8807,153.8907,198.700 758,261,504
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,454.44 7,435.70 7,185.22
Volatility: 24 14 15
Volume: 897,104,512 709,354,240 741,396,800

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 0.2% 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 3 periods.

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