UK FTSE 100 (.FTSE) trades slightly lower amid sterling strength

UK FTSE 100 (.FTSE) trades slightly lower amid sterling strength

UK FTSE 100 (.FTSE) trades slightly lower amid sterling strength

The FTSE 100 is trading down with just one week left before the UK goes to the polls in the general election on 12 December. The political parties enter their final week of campaigning, with the Conservatives leading in the polls.

At 8.40am, the FTSE 100 had lost 0.11%, 7.82 points lower, to trade at 7,180.68. DS Smith, the packaging company, is among the biggest fallers, down 3.4% to 365.82p, despite reporting record group profitability and return on sales, as sustainable packaging lifted performance in the six months to 31 October 2019.

The company saw pre-tax profit rise 31% to £213m, while revenue increased 4% to £3.1bn. Publishing firm Daily Mail & General Trust gained 1.9% to 813p as it reported a 19% increase in underlying adjusted pre-tax profit to £145m for the 12 months to 30 September.

Statutory profit fell sharply reflecting the impact of recent disposals. Soft furnishings firm Dunelm gained 17.8% to 980p as it guided for full year profit to come in ahead of expectations thanks to strong sales growth around its online launch.

Victrex, a polymer solutions company, has shed 1.7% to trade at £23.00 as group revenue, group sales and pre-tax profits were all lower in the 12 months ended 30 September 2019.

Chief executive Jakob Sigurdsson said full-year performance was in line with expectations but that ‘a deterioration during the second half in automotive, electronics and value added resellers’ had offset any growth.

St. Modwen Properties is a climber in early trading, up 1.6% to 455.50p after it reported strong growth in its St. Modwen Homes and industrial and logistics business units during 2019, in a trading update for the period to 30 November. St. Modwen Homes’ sales volumes increased 25% to 1,060 units, which is at the top end of its target to grow volumes by up to 25% per annum

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 7,306.29.

The projected lower bound is: 6,960.88.

The projected closing price is: 7,133.59.

Candlesticks

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.

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 9.3833. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 36.39. 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 85 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 -138.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed down -50.650 at 7,137.850. Volume was 13% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
7,188.5007,194.7807,131.1607,137.850 650,614,144
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,309.00 7,280.19 7,317.21
Volatility: 17 15 14
Volume: 718,015,680 736,659,392 729,592,704

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 2.5% 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 2 periods.

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