FTSE finds buyers around 7139.90 for the third day in a row


FTSE 100 Index (FTSE) Technical Analysis Report for Oct 09, 2019 | by Techniquant Editorial Team

Highlights

FTSE finds buyers around 7139.90 for the third day in a row
FTSE stuck within tight trading range
FTSE closes within previous day's range after lackluster session

Overview

FTSE ended Wednesday at 7166.50 gaining £23.30 (0.33%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (FTSE as at Oct 09, 2019):

Daily technical analysis candlestick chart for FTSE 100 Index (FTSE) as at Oct 09, 2019

Wednesday's trading range has been £56.51 (0.79%), that's below the last trading month's daily average range of £81.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FTSE. Prices continued to consolidate within a tight trading range between 7133.00 and 7223.90 where it has been caught now for the last three trading days.

One bearish candlestick pattern matches today's price action, the Thrusting Pattern.

Prices are trading close to the key technical resistance level at 7199.40 (R1). FTSE 100 found buyers again today around 7139.90 for the third trading day in a row after having found demand at 7143.20 in the prior session and at 7133.00 two days ago. The last time this happened on September 19th, FTSE actually lost -0.16% on the following trading day.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Buying could accelerate should prices move above the nearby swing high at 7223.90 where further buy stops might get activated.

Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for FTSE 100. Out of 508 times, FTSE closed higher 52.95% 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 57.28% with an average market move of 0.20%.

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 1.28% and DAX closing 1.04% higher. None of the markets ended the day in the red. Read more


Market Conditions for FTSE as at Oct 09, 2019

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