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FTSE ready to challenge the highs?The chop in the FTSE continues. We saw those levels mentioned previously between 6970-6920 do another great job and we are a decent amount higher today. The uptrend support line was pierced on a closing basis yesterday and we are back above it as it stands. I think we need to see it kick on above yesterday’s highs if we are to fully get behind a rally back to the highs. The weekly pivot it’s at 7024, the 10 SMA is at 7021 and yesterday’s high was 7013. If the market can overcome those levels then a fresh attempt at the highs is possible. I think it’s now or never for the push higher as the longer the index spends probing those key support levels the more chance it has of breaking down. Visually the charts remain bullish so the preference is to buy on weakness, however for those that are in the bearish camp an intraday sell can be attempted at the trio of resistance levels mentioned above between 7013-7024, stops at 7060.
TVC:UKX
by Investamate
Rio Tinto – Gaps lower, re-enters expanding channelShares opened lower today and are now trading at least 5% lower on the day around 2555 levels. Retreat from 2800 (Oct 11 high) followed by a drop to 2550 levels adds credence to the bearish price RSI divergence on the daily chart. However, a 250 point point drop could lead to short-term loss of momentum and thus yield sideways action before further losses materialize. The immediate support at 2487 (Apr 21) is likely to be put to test. On the higher side, only a daily close above 2623 would suggest bearish invalidation.
LSE:RIO
by TipTVFinance
FTSE100 – Double top breakdown on cards, but caution advisedThe index could see a gap down opening around or below 7000, which is the double top neckline, however caution is advised since 5-DMA and 10-DMA are yet to confirm a bearish crossover and more importantly 10-DMA is still sloping onwards. Hence, we could see a minor correction… although it is to be noted that bearish invalidation is seen only above record highs. Watch for- Rejection at 4-hr 5-MA followed by a break below 7K levels as that would signal a more pronounced sell-off to sub 6900 levels.
TVC:UKX
by TipTVFinance
FTSE100 – Weak response to Sterling slideThe index is trading moderately lower on the day around 7020 levels…This is despite the 100-pip drop in Sterling. The currency currently trades around 1.2630. The lackluster reaction in the FTSE100 index forces us to consider whether the equity markets are no longer comfortable with sliding currency. Moreover, what this means is the index may suffer sharp correction, since it is not responding to sliding currency as it did while the index is anyways vulnerable to correction in Pound. A drop below 7K figure could yield a quick fire drop to 6940 levels.
TVC:UKX
by TipTVFinance
Goldplat – Exciting business prospects, awaiting bullish breakGoldplat PLC (LON: GDP) is back to the beat as shown by its latest yearly financial statements. In today’s CEO interview segment, Gerard Kisbey-Green, CEO of Goldplat updates viewers regarding company’s projects in Ghana and South Africa and plans to improve productivity at Kenya gold mine. The main focus now is on potential business opportunities in South America. Check the CEO interview segment here - Exciting growth prospects ahead – Goldplat - www.youtube.com Daily chart – consolidation We see that prices are consolidation in a range of 7.00-5.15. A bullish break from the sideways channel would suggest the rally from July 2015 lows has resumed. On the lower side, a strong support is seen around 5.15. Note that, a bearish break would add credence to the breach of rising trendline and thus increase prospects of a revisit to July 2015 lows.
LSE:GDP
by TipTVFinance
UK manufacturing PMI preview: What to expect of GBP/USD?UK manufacturing PMI for August is due for release today is expected to show the pace of contraction in the activity moderated somewhat. The index is seen coming-in at 49.00 compared to July’s 48.2 figure. No signs of post Brexit gloom and doom So far we have not seen any sign of post Brexit gloom and doom. It was just the July manufacturing PMI figure that triggered that matched the fear mongering spread by Anti Brexiteers. A positive manufacturing PMI figure; above 50.00; would put to rest whatever little speculation of post Brexit gloom and doom exists out there. Hence, we could see the bird revisit 1.32+ levels. The initial spike could take the pair even higher, although what matters is if the spot manages to hold above 1.32 levels on larger time frame charts. On the other hand, a weaker-than-expected figure could yield a fresh slide to 1.3065 (previous day’s low). Moreover, a weak figure ahead of payrolls release and after hawkish Yellen would only underscore the growing monetary policy divergence between the Fed and the BOE. Technicals – Stuck at 50-DMA Pair’s failure to take out symmetrical triangle resistance on last Friday followed by a drop to 1.3059 and a recovery above 1.31 if followed by a failure at 50-DMA and a break below 1.3059 levels would open doors for a revisit to 1.29-1.2865 levels. On the higher side, a convincing day end close above 1.3315 (23.6% of 1.5019-1.2789) would suggest trend reversal.
by TipTVFinance