FTSE closes higher for the 2nd day in a row
FTSE 100 Index (FTSE) Technical Analysis Report for Jul 13, 2018
Moving higher for the 2nd day in a row, FTSE ended the week 0.58% higher at 7661.87 after gaining £10.57 (0.14%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Friday's trading range was £64.91 (0.85%), that's below last trading month's daily average range of £83.90. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average.
Prices are trading close to a key support level at 7633.90. Unable to break through the key technical resistance level at 7706.60, the market closed below it after spiking as high as 7716.24 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward. After spiking up to 7716.24 during the day, the index found resistance at the 50-day moving average at 7668.94.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to July's low at 7540.70, downside momentum could speed up should FTSE 100 mark new lows for the month.
While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bearish.