BEL20 closes within previous day's range after lackluster session
BEL 20 (BEL20) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BEL20 finished the month 3.9% higher at 3328.01 after edging higher €1.68 (0.05%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BEL20 as at Jun 30, 2020):
Tuesday's trading range has been €44.55 (1.34%), that's far below the last trading month's daily average range of €86.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BEL20.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 3386.34 (R1). After having been unable to move above 3345.64 in the prior session, the stock index ran into sellers again around the same price level today, missing to move higher than 3343.46. The last time this happened on June 18th, BEL20 lost -1.10% on the following trading day.
BEL 20 shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 3386.34 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 3266.55 where further sell stops could get activated. As prices are trading close to June's low at 3215.29, downside momentum might speed up should the index mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for BEL 20. Out of 57 times, BEL20 closed higher 66.67% 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 61.40% with an average market move of 0.80%.
With three out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.92% and DAX closing 0.64% higher. On the flipside the worst performers have been FTSE closing -0.9% lower and CAC losing -0.19%. Read more