FTSE rises to highest close since October 10th
FTSE 100 Index (FTSE) Technical Analysis Report for Nov 08, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FTSE ended Thursday at 7140.68 gaining £23.38 (0.33%). Today's close at 7140.68 marks the highest recorded closing price since October 10th. Closing above Wednesday's high at 7136.80, the index confirmed its breakout through the prior session high after trading up to £34.89 above it intraday.
Daily Candlestick Chart (FTSE as at Nov 08, 2018):
Thursday's trading range has been £56.68 (0.8%), that's far below the last trading month's daily average range of £89.32. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for FTSE.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 7196.40 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for FTSE 100. Out of 701 times, FTSE closed higher 53.78% 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 53.78% with an average market move of 0.11%.
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 -0.61% and DAX closing -0.45% lower. None of the markets managed to end the day in the green. Read more