FTSE still stuck within tight trading range
FTSE 100 Index (FTSE) Technical Analysis Report for Aug 13, 2019 | by Techniquant Editorial Team
FTSE finished Tuesday at 7250.90 gaining £24.20 (0.33%). Trading up to £59.86 lower after the open, FTSE 100 managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FTSE as at Aug 13, 2019):
Tuesday's trading range has been £114.28 (1.58%), that's slightly above the last trading month's daily average range of £93.07. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for FTSE. Prices continued to consolidate within a tight trading range between 7153.90 and 7305.60 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on July 22nd, FTSE gained 0.56% on the following trading day.
After trading as low as 7166.86 during the day, the market found support at the 200-day moving average at 7191.00.
The index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 7305.60 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for FTSE 100. Out of 371 times, FTSE closed higher 60.38% 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 57.14% with an average market move of 0.23%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are CAC gaining 0.99% and N100 closing 0.66% higher. None of the markets ended the day in the red. Read more