BEL20 closes lower for the 2nd day in a row
BEL 20 (BEL20) Technical Analysis Report for Jul 08, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BEL20 ended Monday at 3608.59 losing €35.14 (-0.96%). Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (BEL20 as at Jul 08, 2019):
Monday's trading range has been €40.73 (1.12%), that's slightly above the last trading month's daily average range of €33.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BEL20.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 5th, BEL20 lost -0.96% on the following trading day.
BEL 20 shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for BEL 20. Out of 307 times, BEL20 closed higher 52.77% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.72% with an average market move of 0.33%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are TECDAX losing -0.24% and DAX closing -0.2% lower. None of the markets managed to end the day in the green. Read more