UK FTSE 100 (.FTSE) stocks slide as pandemic fears grow
UK shares tumbled for a fifth straight session on Wednesday, as a U.S. warning to brace for a coronavirus pandemic raised fears of widespread disruptions to supply chains, while Rio Tinto became the latest company to flag a hit from the outbreak.
The Anglo-Australian miner said it would see a short-term impact from the epidemic, which has infected about 80,000 people and killed more than 2,700. Its shares were flat in early trading as it posted its best underlying earnings since 2011.
With the deadly virus spreading rapidly outside China, the U.S. Centers for Disease Control and Prevention has alerted Americans to begin preparing for a likely pandemic.
London’s export-laden FTSE 100 slid 0.5% to a one-year low, while the domestically focussed mid-cap index shed 0.3%.
Sectors reliant on China for revenue, including miners and luxury goods makers, fell between 0.5% and 0.7%
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 7,401.29.
The projected upper bound is: 7,243.60.
The projected lower bound is: 6,828.91.
The projected closing price is: 7,036.25.
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 28 white candles and 22 black candles for a net of 6 white 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 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 15.5796. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 29.51. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 41 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 -216.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 16 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 6 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 24.590 at 7,042.470. Volume was 43% above average (neutral) and Bollinger Bands were 64% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,319.12 7,498.79 7,367.38
Volatility: 23 18 15
Volume: 792,553,792 654,354,880 716,752,640
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 4.4% 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 21 periods. Our momentum oscillator is currently indicating that .FTSE is currently in an oversold condition.