UK FTSE All Share (.FTAS) recovers, driven by defensives, as trade nerves ebb
British shares bounced back on Thursday, driven by financial and consumer stocks, as investor worries eased and another bid for pay-TV firm Sky boosted its stock.
The FTSE 100 ended the session up 0.8 per cent at 7,651.33 points, almost recovering all of Wednesday’s losses after the release of further US tariff plans, as attention shifted to an earnings season expected to deliver solid growth.
Index gains were driven by financials, consumer stocks and Sky, which rose after the latest bid in a battle between Comcast and Twenty-First Century Fox to acquire it.
Sky gained 3.4 per cent after Comcast made a 14.75 pound per share counter-bid, exceeding a Twenty-First Century Fox offer. The gains pushed the pay-TV stock to its highest since the dotcom bubble.
“While a counter-bid is possible, we do not view Sky at 15 pounds as an attractive proposition and view the bidding war as lacking sufficient momentum to support Sky above its current price (3 per cent above the leading bid),” said Macquarie analysts, downgrading the stock to “neutral”.
The FTSE 100 was helped in part by its weighting in “defensive” sectors like consumer staples and healthcare, which have strong cash flows and big payouts and which investors turn to in times of uncertainty.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 4,305.81.
The projected lower bound is: 4,123.12.
The projected closing price is: 4,214.47.
A white body occurred (because prices closed higher 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.
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).
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 44.4052. This is not an overbought or oversold reading. The last signal was a sell 2 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 52.14. 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 36 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 4 period(s) ago.
Rex Takasugi – TD Profile
FTSE-A ALL SHARE closed up 6.100 at 4,213.220. Volume was 31% 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: 4,192.00 4,219.99 4,106.89
Volatility: 13 14 13
Volume: 112,855,968 138,647,216 130,546,912
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 2.6% 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 28 periods.
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