UK FTSE 100 (.FTSE) stocks weaken as Fed rate cut hopes fade
London’s FTSE 100 ended in the red on Monday as markets remained subdued on dampened hopes of a hefty rate cut by the U.S. central bank, while tobacco stocks jumped on Imperial Brands’ buyback and dividend revision plans.
UK blue-chip index edged 0.1% lower in its third session of losses – its longest losing streak in two months, while the midcaps fell 0.4% as a weaker sterling also weighed on its domestically-exposed constituents.
Upbeat U.S. jobs data last week put off bets that the U.S. Federal Reserve would give in to calls for aggressive policy easing.
“Ordinarily, a strong set of employment data would lift global equity sentiment, but seeing as a large portion of the rally was driven by the belief that the Federal Reserve will cut rates this month, equity markets are broadly lower today,” CMC Markets analyst David Madden said.
Imperial Brands helped contain the losses on the blue-chip index, adding 2.2% after the tobacco company announced plans for a 200-million-pound buyback and said it would revise its dividend policy. Rival British American Tobacco rose 1.5%.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 7,369.09.
The projected upper bound is: 7,684.96.
The projected lower bound is: 7,418.19.
The projected closing price is: 7,551.57.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 70.3587. This is not an overbought or oversold reading. The last signal was a sell 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 64.20. 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 sell 1 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 73. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 21 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -3.870 at 7,549.270. Volume was 23% below average (neutral) and Bollinger Bands were 10% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,503.88 7,352.52 7,161.60
Volatility: 9 12 15
Volume: 622,353,024 719,052,416 754,453,632
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 5.4% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on .FTSE and have had this outlook for the last 19 periods.