FTSE breaks back below 200-day moving average
FTSE 100 Index (FTSE) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, FTSE ended Monday at 7285.94 tanking £60.56 (-0.82%). Trading £53.74 higher after the open, the Footsie was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on October 15th, FTSE lost -0.60% on the following trading day. Closing below Friday's low at 7346.50, the stock index confirmed its breakout through the prior session low after trading up to £69.48 below it intraday.
Daily Candlestick Chart (FTSE as at Dec 02, 2019):
Monday's trading range has been £123.25 (1.68%), that's far above the last trading month's daily average range of £67.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FTSE.
Prices are trading close to the key technical support level at 7245.20 (S1). The index closed back below the 200-day moving average at 7317.67 for the first time since November 21st.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test November's close-by low at 7197.30.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R2" stand out. Its common bearish interpretation has been confirmed for FTSE 100. Out of 12 times, FTSE closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 66.67% with an average market move of -1.17%.
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 -2.43% and DAX closing -2.05% lower. None of the markets managed to end the day in the green. Read more