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UKâs benchmark indices jumped above 1% on Tuesday, February 4th, 2020, tracking the trend in the global markets and optimism over the recent fall in oil prices which would help the British economy to contain its fiscal deficit. With the surge, broader indices trended back above their crucial short-term moving averages of 10-day, 20-day and 50-day.
On 4th February 2020, the FTSE 100 ended up approximately 103.2 points or 1.40% higher, to close at 7,438.13 and the FTSE 250 index inched up approximately 220.95 points or 1.04% to close at 21,428.19.
A sharp recovery in the broader indices are early signs of the risk-on trade in markets returning and a plunge in crude oil prices is definitely aiding the markets across the world.
However, shares rarely trade in a linear direction, in contrast they fluctuate up and down. An investor or a trader can identify a movement or trend in an industry or a stock by analysing its past performance over a predefined time frame.
Here in this piece, we are sharing 4 trending stocks on FTSE 100 in February 2020. While picking up these stocks, we have filtered stocks, which are trading above their crucial support-levels of 50-day and 200-day simple moving averages and where the past five-day average daily traded volume was above the 10-day average daily traded volume.
Vodafone Group PLC
United Kingdom-headquartered LON: VOD is a telecommunication services provider. The £40.48 billion market-cap company offers a range of services including voice, messaging and data across mobile and fixed networks. In the early trading days of February 2020 till February 04th, 2020, its shares were up by approximately 1.3%. They pared some of the losses accumulated in the last five trading sessions of January 2020, which majorly resulted from the limited, conditional approval handed to Huawei in UKâs 5G network market.
At the current price (as on February 05th 2020, before the market close) of GBX 152.9 its shares traded above its crucial long-term as well as short-term support levels of 5-day, 10-day, 30-day 50-day and 200-day simple moving averages, which is typically considered to be a favourable measure in an underlying security. Also, Price/200-day SMA ratio of the stock stood at 1.04x, which is another a positive indication.Â
The 14-day and 9-day Relative Strength Indices of the stock are oscillating in a neutral zone.
Taylor Wimpey PLC
London Stock Exchange-traded LON: TW. is a FTSE 100 constituent residential developer. The company operates at a local level from 24 regional businesses spread across the United Kingdom, and it has operations in Spain. The group's operating segment is divided into two categories, i.e., Housing United Kingdom and Housing Spain.
At the February 04th 2020 closing, its shares extended gains for the fourth consecutive day and ended yesterdayâs session 1.73% higher at GBX 222.90. Also, at the time of writing as on February 05th 2020, its shares extended gains accumulated over the previous trading sessions and were quoting approximately 1.53% higher at GBX 226.32.
Also, from the technical standpoint, its shares traded above, its 5-day, 10-day, 20-day, 50-day and 200-day daily moving averages, which is typically a positive trend in an underlying security. Price/200-day SMA ratio stood at 1.06x, which reflects that the current market price is approximately 6% above its long-term support level of 200-day SMA. Also, the moving average convergence divergence of the stock is rising, with the difference between 12-day EMA and 26-day EMA being positive.
Melrose Industries PLC
United Kingdom-headquartered LON: MRO is engaged in buying manufacturing businesses with robust fundamentals. Its areas of operations are divided into four segments which are Energy, Air Management, Air Quality & Home Solution and Ventilation & Air Conditioning businesses.
Since, beginning of February 2020, stock of MRO traded in the green; in a month-over time it is up by approximately 1.4%. In contrast, the broader index handed a negative return in the same interval of time. Also, at the time of writing (as on February 05th 2020, before the market close), its shares traded approximately 1.2% higher at GBX 244.85 and extended the rally for the third consecutive day.
Also, at the current trading level, its shares traded above its crucial long-term and short-term support levels of 50-day and 200-day simple moving averages, which is typically considered to be a favourable technical trend in an underlying. The Price/200-day SMA ration stood at 1.02x, reflecting that MROâs shares are trading approximately 2% above its long-term support level of 200-day SMA.
However, the 14-day Relative Strength Index of the stock is hovering in an overbought zone. Also, the 5-day average daily volume traded was approximately 2x of the 10-day average volume traded in the script.
Rentokil Initial PLC
London Stock Exchange-traded LON: RTO specializes in pest control. The £9.08bn market cap company is engaged in providing route-based services, which enhance lives and protects people. Also, the group is a constituent company of the FTSE 100 index.
Its shares are also trending up in February 2020, as since the beginning of this month, its shares bagged approximately 5.5% till February 05th, 2020 (before the market close, at the time of writing). Also, the 5-day average volume traded in the stock was approximately 2.15x of the 10-day average traded volume in the script.
From the technical standpoint, its shares traded above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day and 200-day simple moving averages, which is typically considered to be a favourable technical trend in the stock.
However, 14-day and 9-day Relative Strength Indices for the stock are hovering above 70, which is typically considered to be in an overbought zone.
