UK FTSE All Share (.FTAS) flounders, pound falls on trade and Brexit fears
Britain’s top stock index dipped on Monday as trade tensions between the United States and China kept the pressure on equity markets across Europe, weighing on multinational companies.
The FTSE 100 fell 0.03 percent to its lowest since May 30 but substantially outperformed other European stock markets. Germany’s DAX – home to big autos stocks on the trade dispute’s front line – sank 1.4 percent while the STOXX 600 fell 0.8 percent.
Strong energy stocks underpinned the FTSE 100, while a weaker pound also boosted the index’s mainly exporting companies.
U.S. President Donald Trump announced tariffs on $50 billion of Chinese imports on Friday, laying out a list of more than 800 imports including cars that would be subject to a 25 percent tariff starting on July 6.
China said it would respond with tariffs “of the same scale and strength” and that any previous trade deals with Trump were “invalid.”
Multinational consumer stocks, vulnerable to higher barriers to trade, were the worst performing, with heavyweights Diageo, Reckitt Benckiser and British American Tobacco down.
Oil stocks opened lower but jumped into positive territory as crude prices snapped back ahead of Friday’s OPEC meeting, expected to result in production increases.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 4,287.80.
The projected lower bound is: 4,138.95.
The projected closing price is: 4,213.37.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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.
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 31.3260. This is not an overbought or oversold reading. The last signal was a buy 11 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 47.73. 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 17 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 -175.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 1 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 16 period(s) ago.
Rex Takasugi – TD Profile
FTSE-A ALL SHARE closed down -1.510 at 4,208.430. Volume was 21% below average (neutral) and Bollinger Bands were 48% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 4,242.46 4,164.67 4,090.98
Volatility: 12 11 12
Volume: 149,525,600 138,954,080 129,794,680
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-A ALL SHARE is currently 2.9% above 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 .FTAS at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .FTAS and have had this outlook for the last 9 periods.