FTSE closes below its opening price unable to hold early session gains


FTSE 100 Index (FTSE) Technical Analysis Report for Apr 15, 2019 | by Techniquant Editorial Team

Highlights

FTSE closes below its opening price unable to hold early session gains
FTSE finds buyers again around 7420.27
FTSE closes within previous day's range after lackluster session

Overview

FTSE ended Monday at 7436.87 edging lower £0.23 (-0.0%). Trading £10.02 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (FTSE as at Apr 15, 2019):

Daily technical analysis candlestick chart for FTSE 100 Index (FTSE) as at Apr 15, 2019

Monday's trading range has been £26.81 (0.36%), that's far below the last trading month's daily average range of £61.69. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FTSE.

During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Northern Doji showed up on January 2nd, FTSE lost -0.62% on the following trading day.

After having been unable to move lower than 7415.00 in the previous session, FTSE 100 found buyers again around the same price level today at 7420.27.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might accelerate should prices move above the nearby swing high at 7454.80 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 7383.50 where further sell stops could get triggered.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for FTSE 100. Out of 113 times, FTSE closed higher 53.98% 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 two trading days, showing a win rate of 58.41% with an average market move of 0.09%.

With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.06% and DAX closing 0.17% higher. None of the markets ended the day in the red. Read more


Market Conditions for FTSE as at Apr 15, 2019

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