FTSE dominated by bears dragging the market lower throughout the day
FTSE 100 Index (FTSE) Technical Analysis Report for Jul 05, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FTSE ended the week 1.72% higher at 7553.14 after losing £50.46 (-0.66%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 7601.30, the index confirmed its breakout through the prior session low after trading up to £59.44 below it intraday.
Daily Candlestick Chart (FTSE as at Jul 05, 2019):
Friday's trading range has been £61.75 (0.81%), that's slightly above the last trading month's daily average range of £58.06. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FTSE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 7528.90 (S1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 7439.89. The last time this happened on April 4th, FTSE actually gained 0.61% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for FTSE 100. Out of 532 times, FTSE closed higher 50.38% 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 60.53% with an average market move of 0.53%.
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 -0.66% and N100 closing -0.57% lower. None of the markets managed to end the day in the green. Read more