FTSE 100 TECHNICALS STRONG- OIL AND WALL STREET LEND MOMENTUM
FTSE 100 futures are currently trading at 6680.5-higher by 1.25% as compared to the previous closing. However, the index futures closed in the negative territory in the previous trading session.
In the cash markets, FTSE 100 was up 2.13% at the time of writing. All sectors of the benchmark were firmly in positive territory by 1000 GMT on Friday. The broad market index was on track for its best day since April. The midcap index FTSE 250 was up 1.61% at the time of writing.
Both indices had dived to their lowest level in more than two years on Thursday.
UK stocks rose from multi-year lows on Friday due to relief spilling over from the U.S. where stocks jumped back towards the end of the day recovering from steep losses earlier in the session.
Oil major BP was the biggest boost to the index, up 4.2% as oil prices rebounded. Stocks of exporter companies also rose led by British American Tobacco which added 3.6%.
Pharmaceutical giants AstraZeneca and GlaxoSmithKline rose 1.7% each while financial heavyweight Prudential jumped 1.8%.
In a surprising turn of events, U.S. equities bounced back to end in positive territory on Thursday after heavy losses for most of the day.
Index members Rio Tinto, Evraz, Anglo-American, Glencore, Antofagasta and Randgold Resources all were up following a rise in metal prices.
With a United States government shutdown also ongoing and Brexit uncertainties remaining unresolved, the broad market index FTSE 100 was on track for its worst quarterly fall since 2011. The benchmark was down 10.9% this quarter.
Data released earlier today reported that British banks approved 39,403 mortgages for house purchases in November on a seasonally adjusted basis. Gross Mortgage Approvals were down from 39,640 in October but up by 0.2% from November 2017 — the first annual rise in 14 months.
On the technical front, the RSI is currently at 41.8% and suggests that the market can move in the upward direction. The current price is above the MA5 (6625.9). The current price is below the middle line of the Bollinger Bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Buy at 6665. Take Profit at 6700. Stop Loss at 6645