FTSE closes within prior day's range after lackluster session
FTSE 100 Index (FTSE) Technical Analysis Report for Jul 08, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, FTSE ended Monday at 7549.27 losing £3.83 (-0.05%). Trading £18.20 higher after the open, the index was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on July 4th, FTSE lost -0.66% on the following trading day. 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 Jul 08, 2019):
Monday's trading range has been £32.67 (0.43%), that's far below the last trading month's daily average range of £57.28. Weekly volatility is also lower, being below 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 Bearish Spinning Top.
Prices are trading close to the key technical support level at 7528.90 (S1). After having been unable to move lower than 7541.90 in the prior session, the stock index found buyers again around the same price level today at 7538.67.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for FTSE 100. Out of 150 times, FTSE closed higher 58.00% 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 59.33% with an average market move of 0.49%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are BEL20 losing -0.96% and TECDAX closing -0.24% lower. None of the markets managed to end the day in the green. Read more