UK FTSE 100 (.FTSE) stumbles into the red after coronavirus rebound

UK FTSE 100 (.FTSE) stumbles into the red after coronavirus rebound

UK FTSE 100 (.FTSE) stumbles into the red after coronavirus rebound

The FTSE 100 slid into the red as a week characterised by a significant rebound in the wake of the coronavirus outbreak finished with a stumble.

The London top flight closed 38.09 lower at 7,466.7 at the end of trading on Friday.

Connor Campbell, financial analyst at Spreadex, said: “Though there is clearly an appetite to keep pushing the Western indices higher, at the same time the coronavirus outbreak is far from dealt with.

“In light of that the highs – in some cases all-time –the market galloped to on Thursday appear quite fragile, perhaps even naïve, hence the selling seen on Friday.”

The FTSE 100 was the worst hit of the major indices across Europe as it was also weakened by a rebound in the value of the pound.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,650.93.

The projected lower bound is: 7,285.01.

The projected closing price is: 7,467.97.

Candlesticks

A black body occurred (because prices closed lower 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 29 white candles and 21 black candles for a net of 8 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 83.1285. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 48.33. 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 28 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 -1. This is not a topping or bottoming area. The last signal was a buy 3 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 24 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed down -38.090 at 7,466.700. Volume was 1% above average (neutral) and Bollinger Bands were 25% wider than normal.

Open     High      Low     Close     Volume___
7,504.7907,506.2607,441.1407,466.700 705,970,240
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,426.44 7,475.24 7,364.26
Volatility: 22 16 14
Volume: 667,400,640 663,235,968 714,005,760

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 1.4% 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 8 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.