FTSE closes below its opening price unable to hold early session gains
FTSE 100 Index (FTSE) Technical Analysis Report for Jul 11, 2019 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, FTSE finished Thursday at 7509.82 losing £20.88 (-0.28%). Trading £27.65 higher after the open, FTSE 100 was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 7515.60, the stock index confirmed its breakout through the previous session low after trading up to £13.94 below it intraday.
Daily Candlestick Chart (FTSE as at Jul 11, 2019):
Thursday's trading range has been £56.68 (0.75%), that's slightly above the last trading month's daily average range of £55.96. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FTSE.
The Footsie ran into sellers again today around 7558.34 for the third trading day in a row after having found sellers at 7559.10 in the prior session and at 7553.30 two days ago. The last time this happened on June 28th, FTSE actually gained 0.97% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 7559.10 where further buy stops might get triggered. As prices are trading close to July's low at 7425.60, downside momentum could accelerate should the index mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for FTSE 100. Out of 9 times, FTSE closed higher 55.56% 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 77.78% with an average market move of 1.58%.
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 -0.91% and BEL20 closing -0.52% lower. None of the markets managed to end the day in the green. Read more