UK FTSE 100 (.FTSE) UK banks told to keep lending, stocks rise, inflation falls
UK banks have been told to keep lending to businesses to ensure that they do not collapse as a result of the coronavirus pandemic, the Bank of England and the government warned on Wednesday.
In a joint letter to the bosses of the country’s major banks, chancellor Rishi Sunak, newly installed Bank of England Governor Andrew Bailey and interim Financial Conduct Authority chief executive Chris Woolard urged them to support companies whose business models had proven viable before the onset of the crisis.
“This will require a willingness to maintain and extend lending despite the uncertain economic conditions. We must ensure that firms whose business models were viable before this crisis remain viable once it is over,” they wrote.
They noted that lenders were expected to support all types of companies, and not just those covered by the previously announced support schemes.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 6,335.17.
The projected upper bound is: 6,154.17.
The projected lower bound is: 5,144.05.
The projected closing price is: 5,649.11.
A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 black candles.
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 73.9656. This is not an overbought or oversold reading. The last signal was a buy 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 42.45. 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 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 16. This is not a topping or bottoming area. The last signal was a buy 4 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 0 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 242.190 at 5,688.200. Volume was 102% above average (neutral) and Bollinger Bands were 253% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 5,260.06 6,805.70 7,224.36
Volatility: 103 55 31
Volume: 1,964,889,344 1,108,571,520 816,701,824
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 21.3% 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 moderate flows of volume out of .FTSE (mildly bearish). Our trend forecasting oscillators are currently bearish on .FTSE and have had this outlook for the last 41 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.