Tag Archives: FTSE

FTSE To Extend To A New High

Daud Bhatti

FTSE Short term Elliott Wave structure shows Primary wave ((4)) ended at 7196.58 on 9/15 low. Rally in Primary wave ((5)) up from there has internal subdivision of a zigzag Elliott Wave structure. Intermediate wave (A) of this zigzag structure is in progress as 5 waves impulse where rally to 7327.50 ended Minor wave 1 and bounce to 7289.75 ended Minor wave 2. Rally to 7527.59 ended Minor wave 3 and Minor wave 4 pullback ended at 7493.68. Minor wave 5 of (A) higher remains in play and could see more upside before ending the cycle from 9/15 low. more…

FTSE 100 Index Elliott Wave: Correction Ended

Daud Bhatti

Short Term Elliott Wave view in FTSE 100 Index suggests the rally from 4/20 low (7096.6) is unfolding as a zigzag Elliott Wave structure where Minute wave ((a)) ended at 7302.57 and Minute wave ((b)) ended at 7197.28. Subdivision of Minute wave ((a)) is unfolding as an impulse where Minuttte wave (i) ended at 7134.53, Minutte wave (ii) ended at 7104.22, Minutte wave (iii) ended at 7290.82, Minutte wave (iv) ended at 7262.32, and Minutte wave (v) of ((a)) ended at 7302.57. FTSE 100 has Index since broken above 7302.57 suggesting Minute wave ((c)) has started. more…

FTSE: Elliott Wave Impulse In Progress

Daud Bhatti

FTSE move up from 7192.35 low appears to be unfolding as an Elliott Wave impulse. Wave (iii) blue has already reached 1.618 Fibonacci extension of wave (i)-(ii) and has already got enough extension in wave (iii) but looking at internal structure of wave (iii) it appears to be in 3 waves and thus ideally we should get another high towards 7406 -7430 to complete wave (iii) before Index makes a 3 wave pull back in wave (iv). As wave (ii) was a simple pull back, so we can’t rule out the possibility of a FLAT or triangle in wave (iv). Wave (iv) would typically retrace to 23.6 -38.2 Fibonacci retracement area of wave (iii). As per Elliott Wave rules, more…

Could The FTSE Hit New Record Highs?

Fawad Razaqzada

European stock markets have started Friday’s session brightly, extending their advance from the late afternoon rebound on Thursday. The rally has probably taken many people by surprise, although this shouldn’t be the case given that the markets in both the UK and US are still very close to their all-time highs. There is a reason why the markets are still elevated despite all the doom and gloom out there, and it continues to be this: cheap central bank money. Although the Fed looks almost certain to raise rates in December, central banks elsewhere will remain extremely accommodative – not least the Bank of Japan and the Bank of England. The focus will be on the European Central Bank next week and market participants will want to know whether policymakers here have started discussing the prospects of tapering ECB’s QE stimulus programme. If Mario Draghi again denies this and delivers a dovish message then we could see further gains for the European markets. more…

FTSE Extends Gains On Oil, Central Bank Support

Fawad Razaqzada

European stocks are trading a touch higher on Friday, with some indices looking to extend their advance for the sixth straight week. The on-going recovery in oil and metal prices continues to provide support for commodity stocks with miners once again dominating the top half of the FTSE 100. Investors have also shown greater enthusiasm for equities and other riskier assets in recent days due, in part, to central bank easing. The Fed has turned less hawkish, too and now only envisages two rate rises in 2016 as opposed to four back in December. The prospects of lower rates for longer and continued recovery in the oil price, means stocks could climb further higher in the short-term. more…

FTSE: Another Short-Covering Bounce For Stocks?

Fawad Razaqzada

At the time of this writing on Friday morning, equities were witnessing some rare green price action in a rather quiet session. The major indices here were up around 1 to 1.5 per cent and US index futures pointed to a firmer start on Wall Street. Compared to the recent sharp falls, today’s bounce represents a mere drop in the ocean. We are not out of the woods just yet as like the previous occasions this may well prove to be just a short-covering bounce, but it is a welcome relief nonetheless. The major indices are either bouncing off key technical support levels or exhaustion points after the recent sharp falls. Some bearish traders seem happy to book profit as they don’t want to go into the weekend holding a position, knowing full well that there is a good chance for a central bank intervention, or some sort of production agreement among the key oil exporting countries in an effort to boost prices. more…

FTSE Drops As Oil Breaks $30, But Will There Be More Drama Later?

Fawad Razaqzada

There was finally some hope of a rebound for the slumping equities as the global stock indices surged higher from deeply oversold levels yesterday. The markets rallied as oil bounced again off the psychologically-important $30 handle. But those hopes were dashed in overnight trading as Chinese shares led a decline in global markets that has so far lasted in the first half of today’s session. So it may be a different day, but it is still the same story: down goes oil, down goes (almost) everything. more…

Stocks Retreat On Renewed Chinese Concerns

Fawad Razaqzada

European equity markets have extended their falls from yesterday, but are off their worst levels as we go to press. Evidently, traders are worried about the impact, in particular on emerging markets economies, of a potential US interest rate hike in December. The odds a rate increase increased dramatically thanks to the solid US monthly jobs report that was reported on Friday. On top of this, Chinese economic growth concerns are also in focus again after Sunday’s weak trade figures were followed by equally weak inflation data overnight, with CPI falling to 1.3 per cent in October from 1.6% in September. more…

FTSE Leaps As Commodities Rebound

Fawad Razaqzada

The UK’s FTSE 100 is up a good 1 per cent at the time of this writing and is up for the third consecutive day, mirroring similar gains across Europe, excluding Germany where another big drop in shares of VW are exerting strong pressure on carmakers across the board. The overall stock market sentiment has improved first and foremost because of fading concerns about the health of the Chinese economy, which together with the expectations of tighter oil and copper markets have helped to lift commodity-linked stocks. Investors also appear to be more relaxed about the prospects of an imminent interest rate lift off in the US. more…