UK FTSE 100 (.FTSE) weighed by a strengthening pound as Brexit deal hopes lifted the UK currency

UK FTSE 100 (.FTSE) weighed by a strengthening pound as Brexit deal hopes lifted the UK currency

UK FTSE 100 (.FTSE) weighed by a strengthening pound as Brexit deal hopes lifted the UK currency

FTSE 100 closed lower on Thursday weighed by a strengthening pound as Brexit deal hopes lifted the UK currency.

The UK’s blue-chip index finished down 75.79 points at 7,128.18 The midcap FTSE 250 lost 2.43 to stand at 19,205.32.

Against the US dollar, the pound added 1% to $1.2247, which sent the Footsie lower as it comprises a big number of dollar earning constituents.

The surge in sterling was triggered by comments from Angela Merkel in relation to the Irish backstop, noted analyst David Madden, senior analysts at CMC Markets.

Germany’s Chancellor said in a news conference it could be possible to solve the backstop issue on the Irish border before the crunch October 31 Brexit deadline, sparking hopes of an orderly UK exit from the EU.

“The inverse relation between the pound and the FTSE 100 is hitting the British index hard. The equity benchmark has large international exposure, and the pound’s rally is causing the pain,” Madden said.

On Wall Street, stocks were mixed to lower, as traders mulled over underwhelming manufacturing data along with the fact that little was given away in the Federal Reserve minutes released yesterday. Investors will be looking out for monetary policy hints from central bankers at the Federal Reserve’s 2019 Economic Symposium which kicks off in Jackson Hole.

The Dow Jones Industrial Average added around 48 points, while the S&P 500 index gained about 4 points, but the Nasdaq Composite shed around 39 points.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 7,336.27.

The projected upper bound is: 7,305.19.

The projected lower bound is: 6,941.55.

The projected closing price is: 7,123.37.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black 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 55.9897. This is not an overbought or oversold reading. The last signal was a buy 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 39.29. 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 11 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 -67. This is not a topping or bottoming area. The last signal was a buy 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 14 period(s) ago.

Rex Takasugi – TD Profile

FTSE 100 INDEX closed down -75.790 at 7,128.180. Volume was 8% below average (neutral) and Bollinger Bands were 122% wider than normal.

Open     High      Low     Close     Volume___
7,203.9707,203.9707,103.6707,128.180 653,342,528
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 7,171.03 7,413.60 7,193.17
Volatility: 17 16 15
Volume: 701,041,024 709,714,368 734,747,712

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 0.9% below 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 14 periods.

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