UK FTSE All Share (.FTAS) IMF cuts UK growth forecasts
The FTSE 100 closed 61.42 points down to 7,600.45, after opening flat, dragged lower by energy and mining companies after a slide in the price of oil and metals.
BP and Royal Dutch Shell both fell by about 2 per cent after the price of Brent Crude fell by about $2.70 to $72.62 a barrel. A slowdown in the Chinese economy sent metal prices tumbling and caused mining stocks to fall, with BHP down 2.5 per cent and Glencore down 1.3 per cent.
Meanwhile, the International Monetary Fund said it expects the UK economy to grow by 1.4 per cent instead of its previous forecast of 1.7 per cent. It also cut its economic growth forecasts for the eurozone, emerging European countries, Japan, China and Canada.
The FTSE 100 is 0.9 per cent down at 7,591.50.
The pound seems to be putting the political turmoil of recent days behind it, edging 0.2 per cent higher against the dollar to $1.326.
Sterling was flat against the euro at €1.132.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 4,278.21.
The projected lower bound is: 4,095.00.
The projected closing price is: 4,186.61.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FTSE-A ALL SHARE), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 47.2711. This is not an overbought or oversold reading. The last signal was a sell 3 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 47.94. 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 37 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 -5. This is not a topping or bottoming area. The last signal was a sell 0 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 5 period(s) ago.
Rex Takasugi – TD Profile
FTSE-A ALL SHARE closed down -27.760 at 4,185.460. Volume was 21% below average (neutral) and Bollinger Bands were 50% 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: 4,195.01 4,221.14 4,107.71
Volatility: 12 14 13
Volume: 111,121,232 138,167,168 130,498,080
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 1.9% 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 .FTAS at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .FTAS and have had this outlook for the last 29 periods.