Will the UK FTSE 100 (.FTSE) smash the 8,000 barrier this year? Some markets watchers think it’s on the cards
The FTSE 100 index could smash through the 8000 mark for the first time this year, according to stock market experts.
Having risen by 12.1 per cent in 2019 and 39.3 per cent in the last decade, analysts believe the blue-chip benchmark will break records.
That would boost millions of savers with money in the stock market through pensions, ISAs and other investments.
The FTSE 100 closed down 44.61 points at 7542.44 yesterday, some way off the all-time high of 7903.5 in May 2018.
But Helal Miah, analyst at The Share Centre, tipped it to reach 8100 this year while Russ Mould, at AJ Bell, went for 8000.
Emma Wall, head of investment analysis at Hargreaves Lansdown, predicted 7884.
With Boris Johnson pledging to take Britain out of the EU on January 31, the US presidential election in November, and trade tensions ebbing and flowing, it looks set to be an eventful year.
Miah said: ‘Investors will realise UK shares trade are at low valuations and flock back to sectors that performed poorly in 2019 – utilities, banks, insurers.’
Mould said: ‘Brexit must still be resolved and doubts hover over the health of the global economy. Were the UK to strike a trade deal with the EU, Washington and Beijing to settle their differences and governments abandon austerity, the outlook for next year could look very different.’
Wall said banks and housebuilders, will do well if a Brexit deal is delivered.
She said: ‘One almighty caveat: UK stocks only crank upwards if the US stock market does too. If the crash currently predicted by bond prices comes to fruition, global markets are all going down.’
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 7,429.75.
The projected upper bound is: 7,705.36.
The projected lower bound is: 7,395.20.
The projected closing price is: 7,550.28.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.
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 41.3340. This is not an overbought or oversold reading. The last signal was a sell 1 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 59.79. 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 1 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 38. This is not a topping or bottoming area. The last signal was a sell 3 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 10 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed down -44.610 at 7,542.440. Volume was 71% below average (consolidating) and Bollinger Bands were 112% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,577.16 7,357.89 7,341.56
Volatility: 15 13 14
Volume: 619,355,072 708,826,752 722,386,944
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 2.7% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .FTSE (mildly bullish). Our trend forecasting oscillators are currently bullish on .FTSE and have had this outlook for the last 8 periods.
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