FTSE100 Surges More Than 200 Points Amid Rally In Chinese Stocks
Aug, 28th 05:11
The London benchmark, the FTSE 100, gained 2.56% or 220 points, closing the day at 6,192.03, with the advanced led by mining-related shares amid surging Chinese stocks.
Anglo American added 9.5%, Antofagasta jumped 9.5% and Rio Tinto closed up 7%. The index has extended is recovery above Friday’s close, up on the week by 60 points.
Technically, the daily chart shows that the technical indicators maintain their upward strength, but remain still below their mid-lines, whilst the 20 SMA heads strongly lower around 6,470.
In the 4 hours chart, the upside is also favored as the index is now above its 20 SMA, whilst the Momentum indicator heads sharply higher above its 100 level and the RSI is slowly resuming its advance around 52.
The daily high stands at 6,231, with an upward acceleration above it supporting a continued advance for this Friday.
Meanwhile US indexes closed sharply higher on Thursday, with the Dow Jones Industrial Average closing the day at 16,654.90 up 370 points or 2.27%, the best two-day point gain ever, following Wednesday advance of 619 points.
The S&P and the Nasdaq rose around 2.45% each, supported by easing concerns over China and a strong US GDP advanced reading for the second quarter of this 2015. The Dow is now above its Friday’s close, finally positive in the week.
Technically, the daily chart shows that the technical indicators have continued recovering ground from extreme oversold readings, but are still in negative territory, whilst the moving averages are far above the current level.
In the shorter term, the index is biased higher, as the 4 hours chart shows that the 20 SMA is turning higher well below the current level, whilst the technical indicators maintain strong bullish slopes above their mid-lines.