Technical Analysis – UK 100 index’s correction from 8½-year low at risk

Posted on May 14, 2020 at 2:58 pm GMT

UK 100 stock index (Cash) is losing steam within the Ichimoku cloud after reversing from the 6,230 level, that being the 50.0% Fibonacci retracement of the down leg from the 7,689 peak to the multi-year low of 4,778. Backing the last two-week deterioration in price is the fading red Tenkan-sen line and the falling stochastics. Moreover, the RSI is picking up negative momentum by dipping below its neutral threshold, while the simple moving averages (SMAs) retain their bearish tone, which [..]


Daily Market Comment – Trump reignites China feud; Stocks fall on data, ECB and earnings blows

Posted on May 1, 2020 at 8:49 am GMT

Markets go into risk averse mood as Trump threatens China with new tariffs Dire data, ECB inaction and mixed earnings further dent risk sentiment Liquidity thin due to May Day holiday; ISM manufacturing PMI coming up Trump’s tough on China rhetoric is back, spooks markets US President Donald Trump raised the prospect of fresh tariffs on China on Thursday as his administration seeks ways to retaliate against China’s handling of the COVID-19 outbreak. The virus has cost more than 60,000 [..]


Daily Market Comment – Dollar firms, stocks dive again as US virus cases soar

Posted on April 1, 2020 at 8:41 am GMT

Risk sentiment sours again on mounting virus fallout, pulling stocks lower Manufacturing PMIs heighten recession fears; US ISM PMI next in focus Fed tries to ease dollar funding pressure but unable to keep currency down for long Stocks head south as virus panic returns It was a poor start to the second quarter for stock markets around the world as the growing coronavirus pandemic shows no sign of slowing, with the number of cases globally shooting past 800,000 yesterday. Stocks [..]

Daily Market Comment – Markets calmer after deluge of stimulus; dollar retreats

Posted on March 20, 2020 at 10:00 am GMT

Stocks edge higher after a savage week as emergency responses stepped up Dollar pulls back but dash for cash likely not over just yet Pound and aussie bounce higher after BoE and RBA announce QE Stocks stage a comeback; will it last? Global stocks enjoyed a much-needed reprieve from the fierce selling pressure of the past two weeks on Friday as the flurry of central bank and government interventions finally appeared to have some effect in relieving investor anxiety. All [..]

Daily Market Comment – Wall Street rebound falters again; rush for dollar eases slightly

Posted on March 18, 2020 at 9:39 am GMT

US shares rally on Fed liquidity boost but futures turn negative as virus uncertainty lingers Trump pushes for $1 trillion stimulus as governments step up virus response Dollar funding squeeze eases, giving other currencies a reprieve Stock markets unable to stop the bleeding Stocks were on the slide again on Wednesday as yesterday’s sharp rebound on Wall Street proved unsustainable amid fears all countries affected by the coronavirus are headed for a complete and possibly prolonged lockdown. Such a scenario [..]


Technical Analysis – UK 100 index hovers near four-year low; may resume positive momentum

Posted on March 11, 2020 at 11:29 am GMT

The UK 100 stock index (cash) bounced above the four-year low of 5,698 on Tuesday to lose some ground again on Wednesday despite the Bank of England reducing interest rates by 0.50 bps at an emergency meeting. With the RSI bottoming twice near its recent lows and jumping above the 30 oversold mark and the green %D Stochastic line rising above the red %K line, expectations are for the market to resume positive momentum in the short-term. Nearby resistance to [..]


Technical Analysis – UK 100 index slumps below long-term supportive trendline

Posted on February 24, 2020 at 2:03 pm GMT

The UK 100 stock index slumped below the supportive trendline that has been holding since the end of 2018, increasing concerns that the market may be changing direction to south. The downside reversal in the RSI, which is currently heading towards its 30 oversold mark, is a negative signal that the bearish action may get new legs in the short-term. Yet, a confirmation could only come below the 50% Fibonacci of 7,132 of the 6,535 – 7,728 up leg. If such an incident materializes, the [..]

Daily Market Comment – Pound slips as hard Brexit fears resurface; stocks regain momentum

Posted on December 17, 2019 at 9:09 am GMT

Pound tumbles as Johnson raises the stakes in getting Brexit done by December 2020 Stock markets continue to cheer US-China trade deal despite some doubts Aussie under pressure after RBA hints at February rate cut Sterling faces Brexit reality check The British pound is on the slide following reports that UK Prime Minister Boris Johnson will use his huge parliamentary majority to make an amendment to the Withdrawal Agreement to make it illegal for the transition period to be extended [..]

Daily Market Comment – Relief as US and China finally agree ‘phase one’ deal but euphoria already fading

Posted on December 16, 2019 at 9:28 am GMT

US and China reach a deal on a ‘phase one’ trade deal but details fail to impress Equity rally eases as euphoria begins to fade; yen extends losses Flash December PMIs in focus in Europe and US US and China confirm an interim deal The United States and China confirmed reports on Friday that a ‘phase one’ trade deal had been agreed by the two sides, ending weeks of speculation about whether a preliminary accord was possible before the end [..]


Technical Analysis – UK 100 index retests ascending trendline; Elliot wave pattern looks in progress

Posted on December 12, 2019 at 11:51 am GMT

The UK 100 stock index is pushing efforts to return above the ascending trendline drawn from the 6,535 bottom after the 50% Fibonacci of the 6,535-7,728 bullish wave provided significant support last week. Failure to close decisively above that line could bring the 50% Fibonacci of 7,133 back under the spotlight. If the bears clear that support this time, negative momentum could pick up steam towards the 7,000 mark where the 61.8% Fibonacci is placed. Further down, the 6,900 level could [..]

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