FTSE pushes through key technical resistance level
FTSE 100 Index (FTSE) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FTSE finished Tuesday at 7577.20 surging £45.50 (0.6%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 7548.30, FTSE 100 confirmed its breakout through the prior session high after trading up to £41.77 above it intraday.
Daily Candlestick Chart (FTSE as at Jul 16, 2019):
Tuesday's trading range has been £65.55 (0.87%), that's above the last trading month's daily average range of £53.33. 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 lower than usual for FTSE.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 7559.10 (now S1), which is likely to act as support going forward. The last time this happened on July 2nd, FTSE gained 0.66% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 7622.60, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for FTSE 100. Out of 517 times, FTSE closed higher 55.13% 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 56.67% with an average market move of 0.28%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 0.75% and CAC closing 0.65% higher. On the flipside the worst performer has been TECDAX closing -0.34% lower. Read more