FTSE dominated by bulls lifting the market higher throughout the day

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


FTSE pushes through key technical resistance level
FTSE dominated by bulls lifting the market higher throughout the day
FTSE closes higher for the 2nd day in a row
FTSE ends the day on a bullish note closing near the high of the day


Moving higher for the 2nd day in a row, FTSE ended Wednesday at 7296.95 gaining £55.35 (0.76%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.

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

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

Wednesday's trading range has been £73.87 (1.02%), that's above the last trading month's daily average range of £62.57. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FTSE.

Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.

Buyers managed to take out the key technical resistance level at 7261.60 (now S1), which is likely to act as support going forward. The last time this happened on May 8th, FTSE actually lost -0.87% on the following trading day. Prices are trading close to the key technical resistance level at 7350.10 (R1).

Although the stock index is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for FTSE 100. Out of 70 times, FTSE closed higher 65.71% 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 57.14% with an average market move of 0.72%.

With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are DAX gaining 0.9% and CAC closing 0.62% higher. On the flipside the worst performer has been BEL20 closing -0.04% lower. Read more

Market Conditions for FTSE as at May 15, 2019

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