FTSE pushes through Thursday's high
FTSE 100 Index (FTSE) Technical Analysis Report for Jan 17, 2020 | by Techniquant Editorial Team
FTSE finished the week 1.14% higher at 7674.56 after surging £64.76 (0.85%) today. This is the biggest single-day gain in over a month. Today's close at 7674.56 marks the highest recorded closing price since July 29, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 7653.60, the stock index confirmed its breakout through the prior session high after trading up to £36.07 above it intraday.
Daily Candlestick Chart (FTSE as at Jan 17, 2020):
Friday's trading range has been £79.86 (1.05%), that's far above the last trading month's daily average range of £55.73. 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 significantly 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 Wednesday, FTSE actually lost -0.43% on the following trading day.
Crossing above the upper Bollinger Band for the first time since December 16, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 7601.56 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 7727.50 is within reach and we could see further upside momentum should the Footsie manage to break out beyond.
Among the 10 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 503 times, FTSE closed higher 55.07% 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 55.86% with an average market move of 0.19%.
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 1.02% and N100 closing 0.94% higher. None of the markets ended the day in the red. Read more