FTSE pushes through key technical resistance level
FTSE 100 Index (FTSE) Technical Analysis Report for Sep 11, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FTSE ended Wednesday at 7338.03 gaining £70.03 (0.96%). Today's close at 7338.03 marks the highest recorded closing price since August 2nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 7270.50, the Footsie confirmed its breakout through the previous session high after trading up to £76.21 above it intraday.
Daily Candlestick Chart (FTSE as at Sep 11, 2019):
Wednesday's trading range has been £78.76 (1.08%), that's slightly below the last trading month's daily average range of £88.47. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for FTSE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on September 4th, FTSE actually lost -0.55% on the following trading day.
Buyers managed to take out the key technical resistance level at 7325.20 (now S1), which is likely to act as support going forward.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight 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 516 times, FTSE closed higher 54.26% 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 55.62% with an average market move of 0.21%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.26% and DAX closing 0.74% higher. None of the markets ended the day in the red. Read more