FTSE closes lower for the 4th day in a row
FTSE 100 Index (FTSE) Technical Analysis Report for Jul 09, 2019 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, FTSE finished Tuesday at 7536.47 losing £12.83 (-0.17%). Closing below Monday's low at 7538.70, the Footsie confirmed its breakout through the previous session low after trading up to £20.76 below it intraday.
Daily Candlestick Chart (FTSE as at Jul 09, 2019):
Tuesday's trading range has been £35.36 (0.47%), that's below the last trading month's daily average range of £56.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FTSE.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for FTSE 100. Out of 63 times, FTSE closed higher 60.32% 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 66.67% with an average market move of 0.90%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are DAX losing -0.85% and TECDAX closing -0.69% lower. None of the markets managed to end the day in the green. Read more