UK FTSE 100 (.FTSE) surged in the first trading session of the new decade
Britain’s stock market indexes surged in the first trading session of the new decade, as investors welcomed China’s monetary policy easing and U.S. President Donald Trump set the date for sealing a Phase 1 trade deal with Beijing.
The FTSE 100 .FTSE jumped after two straight sessions of losses to rise 0.8% after China cut the reserve requirement ratio (RRR) for banks and Trump said a Phase 1 trade deal with Beijing would be signed on Jan. 15.
Mining shares .FTNMX1770 and oil majors were among the top gainers, with Antofagasta (ANTO.L), Glencore (GLEN.L) and BP (BP.L) advancing between 2%-3.1%.
The FTSE 250 .FTMC soared 1% to notch up a fresh record high and the British indexes enjoyed their best day since mid-December, when Prime Minister Boris Johnson’s election win and de-escalating trade tensions had triggered a rally in equities.
Gains were further supported by strong demand for cyclical stocks such as banks, that led blue-chips Lloyds (LLOY.L) and Barclays higher by 2% and 3%, respectively.
Technical Indicators
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 7,433.49.
The projected upper bound is: 7,769.84.
The projected lower bound is: 7,456.39.
The projected closing price is: 7,613.11.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 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 29.4236. This is not an overbought or oversold reading. The last signal was a sell 2 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 64.00. 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 2 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 52. This is not a topping or bottoming area. The last signal was a sell 4 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 11 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 61.860 at 7,604.300. Volume was 35% below average (neutral) and Bollinger Bands were 116% wider than normal.
Open High Low Close Volume___
7,542.4407,624.7807,542.4407,604.300 482,205,856
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,585.69 7,366.70 7,343.08
Volatility: 9 14 14
Volume: 563,047,168 701,398,336 721,483,840
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 3.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .FTSE (mildly bullish). Our trend forecasting oscillators are currently bullish on .FTSE and have had this outlook for the last 9 periods.
