FTSE: Posts worst monthly slide since October 2018

Intermediate
  • BEARISH; Risks remain skewed to the downside for the UK benchmark despite late recovery attempts.
  • Benchmark FTSE 100 closed higher this week for the first time in August after selling off for 4 consecuvtive weeks.
  • The export-heavy index got crushed by sterling’s recovery, U.S.-China trade spat and a sharp drop in mining stocks.
    • Miners were hit by a 25% slide in iron ore prices.
  • On the technical front, FTSE retraced from its lows set earlier in the week @ 7045.
  • Market rejected the 21 EMA @ 7221 today, suggesting negative risks remain.
  • Resistance seen @ 7273, 38.2% fib & 7293, the 200 EMA. 50 EMA resides just above the 200 @ 7307.
  • Trending setup reaffirms the downside as 21 EMA holds market below mean value. Medium-term 50 EMA continues to slant down.
  • Momentum setups rise but remain in negative territories. The RSI is at sellable levels as it rallies to 47.
FTSE Chart 2019-09-01

Editor

Akif SH. Din MSTA, CFTe, 2018 Bronwen Wood Memorial Prize Winner, has a solid understanding of global markets, fundamental analysis as well as having a vast amount of knowledge in technical analysi...continued

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