UK FTSE 100 (.FTSE) stocks are subdued after mixed US jobs report

UK FTSE 100 (.FTSE) stocks are subdued after mixed US jobs report

UK FTSE 100 (.FTSE) stocks are subdued after mixed US jobs report

FTSE 100 closed in positive territory on the day and over the week after a mixed US jobs report on Friday.

The UK’s premier share index closed  11.17 points higher, at 7,282.34. Over the week as a whole, a busy one if you like UK political drama, it added 1.04%.

Meanwhile, FTSE 250 also closed higher, up 55.96 points to 19,705.52.

Earlier in the day, the non-farm payrolls showed the US economy added just 130,000 new jobs in August, the smallest increase in three months, providing further evidence that hiring has slowed amid an escalating trade dispute with China.

Economists had expected 158,000 and the July reading was also revised down to 159,000 from 164,000.

“The chatter about a Fed rate cut later this month is still doing the rounds, but seeing as the unemployment rate is near a 50-year low, and wages are 3.2%, which is comfortably above the 1.8% inflation rate, a rate cut might not be a done deal,” noted analyst David Madden, at CMC  Markets.

On Wall Street, the Dow Jones Industrial Average added 97.57 points, while the S&P 500 gained 5.68.

Among the top gainers in London was house builder Berkeley Group Holdings (LON:BKG), which added 2.76% to 3,980p as it emerged that the firm has a forward sales book that exceeds £1.8 billion, and pricing has ‘remained stable’.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,465.06.

The projected lower bound is: 7,094.82.

The projected closing price is: 7,279.94.

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 23 white candles and 27 black candles for a net of 4 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 72.9768. This is not an overbought or oversold reading. The last signal was a sell 1 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 51.88. 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 21 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 81. This is not a topping or bottoming area. The last signal was a sell 0 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 7 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed up 11.170 at 7,282.340. Volume was 3% below average (neutral) and Bollinger Bands were 17% narrower than normal.

Open     High      Low     Close     Volume___
7,271.1707,284.1107,244.1307,282.340 692,283,712
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,210.57 7,374.93 7,201.18
Volatility: 10 16 15
Volume: 673,839,616 692,888,640 724,339,008

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 1.1% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 24 periods.

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