Monday, 9 February 2015

London Stock Exchange Overview and Next Session Predictions




MARKET OVERVIEW

UK stocks falls after stronger U.S data and jump in oil prices. In first part of the day stock had started on the back foot after figures showed that the overall UK trade deficit unexpectedly widened from £1.8bn in November to £2.9bn in December, missing analysts' forecasts for a fall to £1.7bn.
The FTSE 100 finished the day in red with down 0.2% at 6853, as mining stocks tracked metal prices lower. If during the day market is breaching the resistance level of 6890 on upside after consolidation, then it can test the level of 6960 with the support of 6840.

TOP GAINER
Name
Close Price
Change %
Barclays
257.57
2.72
William Hill
388.9
1.89
Schroders
2965
1.72
Royal Bk Scotl GR
383.9
1.64
Aviva
537
1.42

TOP LOSER

Name
Close Price
Change %
Tate & Lyle
573.5
13.69
BG Group
932.7
2.31
Anglo American
1145.5
2.26
BHP Billiton
1505
2.15
Rexam
527.5
1.95



Stock pick of the Day : Aviva Plc


RECOMMENDATION BUY
TARGET 552
The Major trend of Aviva Plc is sideways and it is showing strength for buying. If it moves above the resistance then one can initiate the long position in the stock. If it breaks the level of 542 upside then it can show upside movement for the target of 552 with the stop loss of 536.

CHART FORMATION:-
Stock is forming Bullish Flag and buying can be seen in the chart. Crossing the resistance will lead to upside movement. Stock is trading above the 200 & 50 DMA with positive bias.

INDICATORS:-
RSI is trading near to 63.74 level with positive bias, in upcoming session upside movement is expected. Volume is also on higher side only.
MACD and Signal line is sustaining above the zero level line.