Investing.com UK - Financial Markets Worldwide
⚠ Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

FTSE 100 Back Above The 200-day Moving Average

ByThierry Laduguie
Published 19/11/2014, 07:59
UK100
-

Last week both 13-day BTI and Top 20 Differential gave a sell signal but the FTSE 100 failed to decline following some positive news coming from the ECB and Japan. When the indicators give a strong sell signal it is never guaranteed that the FTSE will decline. There is always a small chance the index will rally because we can not predict what central banks or government will announce.

The FTSE was ready to decline but the ECB announced new measures to boost the economy as did Japan yesterday. Important announcements are more powerful than any indicator. If the news is positive the market will simply rally whether or not the indicators are overbought. There is also positive influence due to seasonality. The market tends to rally during the last two months of the year. But this is just a tendency and there is no certainty the market will rally. In fact last year we saw a large decline in November.

The stock market is ready to resume its decline but once again politicians and central bank intervened to drive prices higher. This is pure manipulation and we have to live with it. What we have noticed is that governments in Japan and Europe have failed to boost their economies with monetary stimulus. We know it does not work yet each time they make a new announcement the stock market rallies. The FTSE is now back above the 200-day moving average. This is a resistance area and a perfect setting for the start of the next leg down.

FTSE 100 Daily Chart

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.