UK Stock Market Analysis and Stock Pick of the Day

MARKET OVERVIEW

Weakness in the resource sectors limited gains in London on Monday, though equity markets still managed to register their fifth straight day of gains as investors readied themselves for the Christmas break.The FTSE 100 finished 0.5%higher at 6,577, but pulled back after reaching a high of 6,620.95 earlier on. It has not exceeded this level since 8 December when it closed at 6,672.15.The FTSE has rally during the session on Monday, but turned back around as the 6600 level is far too much in the way resistive.Market can show short term correction any pull back rally will be buying opportunity and market can be headed towards 6900 levels.

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TOP GAINER

Name	Close Price	Change %
Enterprise Inns	110	2.8
Compass Group	1107	1.93
Bae Systems	471.3	1.86
Kingfisher	330.1	1.82
Johnson Matthey	3410	1.76

TOP LOSER

Name	Close Price	Change %
Tesco Plc	181	-2.37
Bg Group	886.1	-1.69
Anglo American	1173.5	-1.63
Rsa Insur Grp	445.2	-0.98
Antofasta	738.5	-0.81

UK Stock Pick of the Day : WH Smith Plc Ord 

 

RECOMMENDATION BUY

TARGET 1430

The Major trend of WH Smith Plc Ord is bullish and it's consolidating near to resistance level at higher level with positive bias can show northward journey .One can initiate long position in the stock above the level of 1340 with the stop loss of 1290 for the target of 1430.

CHART FORMATION:-

Stock is showing consolidation at higher level crossing of resistance level can show upside movement

It's trading above 50 & 200 DMA with positive bias.

INDICATORS:-

RSI is trading above the level of 50 and showing consolidation , Breaching of the resistance level can manage to test further high.

MACD and Signal line is manages to give break out above zero level line sustaining above it can sjow upside movement.

GBPUSD Technical Report and Signal for Thursday, December 11 2014

Technical Report

SUMMARY:

The secondary trend of GBP/USD is bearish, it is sustaining below the falling trend line & expected to give breakout at upside. Prices are taking support of 200 SMA & 30 DMA , consolidating with a positive bias. 1.5770 is a important level and breaching of it can show upside movement to the levels of 1.5820. MACD line is sustaining above the zero line, which is also indicating the positive sentiment in the market. RSI is also supporting the same. 

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STRATEGY:- 

For Today, GBP/USD is looking strong on chart. We can expect positive side movement for this session. One can go for buy on dips strategy for this pair for intra day to mid term positions.

Technical Chart

 

	S3	S2	S1	PIVOT	R1	R2	R3
EUR/USD	1.2300	1.2330	1.2389	1.2419	1.2478	1.2508	1.2567
GBP/USD	1.5591	1.5618	1.5667	1.5694	1.5743	1.5770	1.5819
USD/JPY	114.83	116.27	117.04	118.48	119.25	120.69	121.46
USD/CHF	0.9578	0.9619	0.9642	0.9683	0.9706	0.9747	0.9770
AUD/USD	0.8183	0.8222	0.8269	0.8308	0.8355	0.8394	0.8441
EUR/GBP	0.7852	0.7867	0.7894	0.7909	0.7936	0.7951	0.7978
USD/CAD	1.1368	1.1399	1.1441	1.1472	1.1514	1.1545	1.1587
NZD/USD	0.7529	0.7594	0.7703	0.7768	0.7877	0.7942	0.8051

UK Stock Market Technical Analysis

British banks were in the money on Friday as positive job news across the Pond revived the prospect of a US rate hike in 2015. The FTSE fell initially during the course of the week, but found enough support near the 6650 level to turn things back and closed on positive note at 6742 .The market is facing resistance from the level of 6780 and any pull back is a buying opportunity.As index is forming strong pattern for further buying, crossing of resistance level can test the level of 6900 with the support of 6600.

TOP GAINER

Name	Close Price	Change %
Kingfisher	328.2	3.21
Vodafone Group	230.6	3.11
Schroders Nvtg	2171	3.04
Barclays	249.45	2.8
Carnival	2805	2.75

TOP LOSER

Name	Close Price	Change %
Bhp Bhilliton	1474	-1.73
Bg Group	907.5	-1.7
Next	6655	-1.48
Rio Tinto	2898	-1.21
Anglo American	1268	-1.21

Fidelity European Value Plc

Technical Chart

RECOMMENDATION BUY

TARGET 170

The major trend of Fidelity European Value Plc is bullish and it is showing strenght for upside and manages to sustain above the trend line.For upcoming session stock is looking strong on charts and facing resistance from l65 level crossing of it can show upside movement and can test the level of 170 with stop loss of 160.

CHART FORMATION:-

Stock has looking strong on charts and Flag pattern crossing of neck line can show upside movement.

It's trading above the 50 DMA and200 DMA crossing with positive bias.

INDICATORS:-

RSI is trading above the 50 level and showing consolidation , crossing of 60 level it can test the level of 70.

Macd & Signal line is trading above Zero level line with positive bias.

Travel and Retail sector jumped, UK Market ended flat.

A slight recovery in oil prices wasn't enough to ease the pressure on the energy sector on Friday, though stocks in London erased losses by the end of trade as shares in the travel and retail sectors jumped. London's FTSE 100, which hit a low of 6,667.08 in morning trade, finished more or less flat, falling just 0.01%to 6,722.62. The FTSE fell during most of the week, but found enough support near the 6675 level to turn things back . It is expected that market will go to 6900 level, which proving to be major resistance level with the support of 6400 level.

TOP GAINER

Name	Close Price	Change %
Carnival	2820	4.56
Kingfisher	312	3.41
Dly Mail & Gen Tst A	842	3.31
Vodafone Group	233.95	2.9
Imperial Tobacco	2960	2.46

TOP LOSER

Name	Close Price	Change %
Bg Group	902.4	-8.55
Bhp Billiton	1517	-3.19
Anglo American	1321.5	-2.26
Smith Group	1157	-2.12
Rolls-Royce Hldgs	842.5	-2.03

Drax Group Plc Ord

Technical Chart

RECOMMENDATION BUY

TARGET 652

The major trend of Drax Group Plc is bearish but it is showing strenght for upside and from last few trading it is not managing to sustain at lower level and closing with positive bias.For upcoming session stock looking strong on charts and facing resistance from 200 DMA crossing of it i.e. 612 show the level of 652 with stop loss of 599.

CHART FORMATION:-

Stock has looking strong on charts and forming flag pattern crossing of the neckline can give the target of pole.

It's trading above the 50 DMA and facing resistance from 200 DMA crossing of it can show upside movement.

INDICATORS:-

RSI is trading above the 50 level and showing consolidation , crossing of 60 level it can test the level of 70.

Macd & Signal line is trading above Zero level line with positive bias.

EUR-JPY Technical Analysis and Trend

 

	S3	S2	S1	PIVOT	R1	R2	R3
EUR/USD	1.2390	1.2411	1.2423	1.2444	1.2456	1.2477	1.2489
GBP/USD	1.5544	1.5573	1.5593	1.5622	1.5642	1.5671	1.5691
USD/JPY	118.52	118.61	118.73	118.83	118.95	119.05	119.17
USD/CHF	0.9640	0.9649	0.9664	0.9673	0.9688	0.9697	0.9712
AUD/USD	0.8362	0.8395	0.8417	0.8450	0.8472	0.8505	0.8527
EUR/GBP	0.7943	0.7949	0.7957	0.7963	0.7971	0.7977	0.7985
USD/CAD	1.1406	1.1417	1.1435	1.1446	1.1464	1.1475	1.1493
NZD/USD	0.7721	0.7755	0.7774	0.7808	0.7827	0.7861	0.7880

Today's Chart: EUR/JPY (HOURLY )

EUR-JPY Technical Chart

SUMMARY:

EUR/JPY is in consolidating range, the pair is sustaining on the falling trendline with a negative bias, if it breaks the trendline at 147.98 levels, we can expect it to test the level of 147.75/147.51 downside. Prices can come down to test 200 SMA supporting the downside movement in the pair. RSI is sustaining in selling territory indicating the bearish sentiment in the market. MACD line is also about to break the zero line, supporting the same.

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STRATERGY :- For Today, EUR/JPY is looking weak on chart. We can expect downside movement for few upcoming session. Forex traders can go for sell on higher level strategy for this pair for intra day to mid term positions.