UK FTSE 100 (.FTSE) tumbles on HSBC cutbacks, Apple warning

UK FTSE 100 (.FTSE) tumbles on HSBC cutbacks, Apple warning

UK FTSE 100 (.FTSE) tumbles on HSBC cutbacks, Apple warning

London’s FTSE 100 slid to a two-week low on Tuesday, weighed down by a near 7% drop in financial heavyweight HSBC as traders sold stocks globally on the back of a earnings warning from tech giant Apple <AAPL.O> due to the coronavirus epidemic.

The main index shed 0.9%, with HSBC dragging a sub-index of banks over 4% lower after its annual profit declined and it laid out plans for a major strategic overhaul that included 35,000 job cuts and the halting of share buybacks.

The losses followed modest rises in the previous session when China introduced more stimulus measures to shore up its economy and as many investors were observing a U.S. holiday.

Holiday Inn-owner InterContinental Hotels outshined, though, gaining 1.6% despite it saying it would take a hit from the virus after a fall in revenue per room due to the impact of the past year’s protests in Hong Kong.

Utilities Severn Trent and United Utilities also outperformed the broader market, climbing about 2% each after JPMorgan sounded bullish on the sector following a recent price control published by Britain’s water regulator.

NMC Health advanced for the second straight session climbing 5.4%, a day after its founder BR Shetty resigned as co-chairman of the healthcare company amid doubts about the shareholdings of its major investors. The company is still worth less than half of what it was three months ago.

But AIM-listed engineering firm Tekmar sank 25% after it warned results would now be worse than previously thought thanks to a halt in shipments to and from China.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 7,562.84.

The projected lower bound is: 7,210.95.

The projected closing price is: 7,386.89.

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 30 white candles and 20 black candles for a net of 10 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 13.1906. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 6 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 42.96. 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 35 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 -62. This is not a topping or bottoming area. The last signal was a buy 10 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 0 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed down -51.240 at 7,382.010. Volume was 12% above average (neutral) and Bollinger Bands were 16% narrower than normal.

Open     High      Low     Close     Volume___
7,433.2507,433.2507,353.4107,382.010 786,107,072
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 7,461.11 7,499.10 7,366.72
Volatility: 11 15 14
Volume: 669,761,664 654,337,344 713,922,304

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 0.2% above its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on .FTSE and have had this outlook for the last 15 periods.

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