Good news is here for FTSE100 bulls. There are no signs of typical bull market complacency in the recent rally in the mining heavy index, said Richard Hunter, Head of Research at Wilson King Investment Management.
Wilson joined us on today’s London open show and talked about the likelihood of the index heading towards/breaching 7000 levels. Check the entire...
Bearish factors –
Bearish crossover between 5-DMA and 10-DMA
Bearish break in daily RSI from rising channel
Increased odds of Fed rate hike
Bullish factors –
Cable weakness &
The index is still above key support level of 6780
Inverted head and shoulder breakout target yet to be achieved
Thus, the overall trend remains bullish unless the index closes...
Daily chart chows –
Falling trend line has been breached, however,
RSI is close to being overbought, while money flow index is going nowhere
Hence, failure to take out 175.45 (March 8 high) could yield a pull back to falling trend line level of 165 and 160 (23.6% of July 2015 high – June 2016 low).
On a larger scheme of things, the stock appears on track to...
Fresnillo is down 3.61% today and is a top FTSE100 loser.
The daily chart shows –
• Double top breakdown
• Money flow index approaching oversold region for the first time since November 2015
• RSI is approaching oversold region for the first time since July 2015
Overall, prices appear on track to test 1500 levels (100-DMA), although a minor pull back once...
Onesavings has jumped more than 10% to 271p as the group, which offers residential mortgages and buy-to-let loans reported a 36% increase in the first half profits to GBP 64.6 million.
On the daily chart –
Prices are attempting a break above critical resistance of 271.65 (May 11 low).
The odds of a failure to break higher/hold above 271.65 are high given the...
Daily chart pattern
Bullish symmetrical triangle breakout
Overbought money flow index for the first time after March 2015
Stuck at 50-DMA level of 1125.24
The daily chart suggests the bullish break from symmetrical triangle could be short lived. The only fact that remains in favor of bulls is the daily RSI, which is well short of overbought territory....
Daily chart pattern – Rising channel
Housebuilder Persimmon has reported a 29% jump in first-half profits and said customer interest since the Brexit vote has been "robust". At the time of writing, shares were up 3.68% at 1860 levels. Daily high stands at 1884 levels.
A bullish break above 200-DMA level of 1901 would open doors for pre-Brexit level of 2125. The...
Daily chart pattern – Bearish breakout from rising wedge
Failure to hold above 50-DMA if followed by bearish break from rising wedge on day end closing basis coupled with daily RSI breaching rising trend line and falling money flow index would signal a sell-off to 173.80 (Aug 5 low).
On the higher side, only day end close above 50-DMA would signal bearish...
Fresnillo, the precious metals miner, is the top loser in the FTSE100 index; down 5.42% at the time of writing.
Pattern – Double top on daily with neckline at 1738
Sliding daily RSI and money flow index coupled with a sharp drop today suggests prices are likely to test the neckline support at 1738 levels.
A day end close below neckline would signal trend...
Daily chart pattern – Rising trend line is being put to test
Daily RSI breaching the rising trend line
Daily money flow index diverged from price chart
Overall, prices appear on track to breach rising trend line support on day end closing basis.
Such a move would add credence to failure to sustain above 38.2%...
Daily chart pattern – Two year long falling trend line has been breached
RSI eyeing bullish break
Money flow index suggesting further gains
Prices thus appear on track to test next major hurdle seen directly at 1156.27 levels (38.2% Fibo of 2014 high – 2016 low).
Bullish invalidation is see only if prices see a day end close...
Daily chart pattern – sideways channel
At 157.20, Prices are currently flirting with upper end of sideways channel. The daily RSI has already ended sideways action and is pointing northwards.
Hence, a bullish break on day end closing basis would open doors for a 100-DMA located today at 169 levels.
On the lower side, a breach of small rising trend line would...
Daily chart shows a bullish break from symmetrical triangle formation. Prices breaking above Aug 9 high adds credence to the rebound from triangle support seen today.
Furthermore, we also see a bullish break on daily RSI from flag pattern.
Hence, prices appear on track to test 200.00 levels.
The daily money flow indicator suggests bulls need to observe caution. If we look back into history, each time the indicator neared 67-70 levels, there was a notable pullback in the index.
The view gains further credence when we consider the fact that FTSE100 is hovering around key resistance zone of 6850-6900.
If indeed the historical pattern unfold (which...
Tullow oil shares have had a five-day winning streak on the back of rally in oil prices. Shares are trading moderately lower today in line with the weakness in oil prices.
Oversupply concerns have raised their ugly head off late and may cap the corrective rally in oil prices if today’s US government data shows gasoline inventory buildup.
On the daily chart of...
Multiple failures around 234-235 levels followed by a sharp drop today suggests the prices could be heading lower to the symmetrical triangle floor seen around 226 levels.
Daily MACD and RSI have turned flat, while the volumes have stayed healthy. Moreover, break in volumes above 20-day average today would add credence to possibility of a drop to 226 levels.
Standard Life PLC is among the top 5 FTSE100 risers; trading 4.4% higher on the day at 332.50.
Volumes have held around 20-day moving average, while there are no signs of topping out on the daily MACD.
The only sign of worry if any is the possible divergence on the Money Flow indicator.
Overall, the stock appears on track to test 345 (38.2% of 2015 high –...