BEL20 closes within prior day's range after lackluster session
BEL 20 (BEL20) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BEL20 finished the week 0.73% higher at 3375.86 after losing €14.32 (-0.42%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BEL20 as at Sep 18, 2020):
Friday's trading range has been €39.96 (1.19%), that's below the last trading month's daily average range of €51.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BEL20. Prices continued to consolidate within a tight trading range between 3339.83 and 3402.51 where it has been caught now for the whole last trading week.
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.
Prices are trading close to the key technical support level at 3350.88 (S1). Prices are trading close to the key technical resistance level at 3402.51 (R1). After having been unable to move above 3402.51 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 3399.78. The last time this happened on Tuesday, BEL20 actually gained 0.88% on the following trading day.
The index shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 3402.51 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 3350.88 where further sell stops might get triggered. As prices are trading close to September's high at 3412.33, upside momentum could speed up should the stock index mark new highs for the month.
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. While it is usually interpreted as bearish, it has actually shown to be bullish for BEL 20. Out of 311 times, BEL20 closed higher 55.31% 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 54.98% with an average market move of 0.24%.
With three out of the other four Major European Indices closing lower today, the ones that stand out on the negative side are CAC losing -1.22% and FTSE closing -0.71% lower. On the flipside the best performer has been TECDAX closing 0.55% higher. Read more