UK FTSE 100 (.FTSE) Uncertain future
In the coming months, FTSE 100 company share prices could continue to be volatile. The IMF recently released a report which stated that there are risks to global economic growth, with tariffs expected to hurt progress in the coming years. Already, a number of tariffs have been announced by the US, China and various other countries across the world. Given the tit-for-tat nature of tariffs, an increasingly protectionist world could be ahead, and this may have a negative effect on the growth potential of a wide range of companies.
Alongside this risk is the potential of an overheating US economy. Aggressive fiscal policies that have included tax cuts are having a positive impact on US growth at the present time. However, there’s a risk that this could lead to a higher rate of inflation, which could prompt a faster rise in interest rates. This, it’s feared, could check the growth rate of emerging markets – many of which have borrowed heavily to stimulate growth.
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 7,384.74.
The projected upper bound is: 7,147.39.
The projected lower bound is: 6,821.23.
The projected closing price is: 6,984.31.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
An inverted hammer occurred. If this occurs during a downtrend (which appears to be the case with FTSE 100 INDEX) it implies a reversal. Look for a confirmation of the reversal on the bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend the long upper shadow indicates that the bears are gaining control and a top may occur.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 0.9024. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 23.37. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 22 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 -147.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 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 sell 5 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -11.020 at 6,995.910. Volume was 14% above average (neutral) and Bollinger Bands were 120% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 7,283.69 7,452.99 7,476.29
Volatility: 14 14 15
Volume: 868,153,536 751,566,592 815,194,432
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 6.4% 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. Our momentum oscillator is currently indicating that .FTSE is currently in an oversold condition.