FTSE finds buyers again around 7515.61
FTSE 100 Index (FTSE) Technical Analysis Report for Jul 10, 2019 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, FTSE ended Wednesday at 7530.69 losing £5.81 (-0.08%). Trading £22.65 higher after the open, the stock index 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.
Daily Candlestick Chart (FTSE as at Jul 10, 2019):
Wednesday's trading range has been £43.51 (0.58%), that's slightly below the last trading month's daily average range of £55.51. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on June 27th, FTSE actually gained 0.31% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move lower than 7517.90 in the prior session, the market found buyers again around the same price level today at 7515.61.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for FTSE 100. Out of 25 times, FTSE closed higher 64.00% 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 72.00% with an average market move of 1.40%.
With three out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are DAX losing -0.51% and N100 closing -0.17% lower. On the flipside the best performers have been TECDAX closing 0.2% higher and BEL20 gaining 0.05%. Read more