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GB 100 Index Technical Analysis - GB 100 Index Trading: 2020-03-20
GB 100 Index Technical Analysis Summary
Below 4832.87
Sell Stop
Above 5844.09
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Sell |
| Donchian Channel | Sell |
| MA(200) | Sell |
| Fractals | Sell |
| Parabolic SAR | Sell |
GB 100 Index Chart Analysis
GB 100 Index Technical Analysis
On the daily timeframe GB100: D1 is falling below the 200-day moving average MA(200), which is declining itself. However, the RSI has formed a bullish divergence. We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 4832.81. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 5844.09. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (5844.09) without reaching the order (4832.81), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of Indices - GB 100 Index
Economic data from UK deteriorated last week. Will the GB100 retreat continue?
British economic data didn’t improve following Bank of England decision to cut rates half a percentage points to 0.25% at its March 11 meeting. Manufacturing production decline deepened to 3.6% over year in January from 2.5% in the previous month. Balance of trade surplus declined to 4.2 billion Pounds from 6.3 billion. And labor market report showed unemployment ticked up in January to 3.9% from 3.8%. To combat coronavirus impact on economy UK government announced £330 billion financial aid program ($398 billion) of government-backed loans and guarantees. Deteriorating economic data are bearish for GB100.
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