FTSE closes lower for the 2nd day in a row
FTSE 100 Index (FTSE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FTSE ended the week -0.77% lower at 7409.13 after losing £42.87 (-0.58%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FTSE as at Feb 14, 2020):
Friday's trading range has been £69.16 (0.93%), that's below the last trading month's daily average range of £88.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FTSE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 7392.80 (S1). After having been unable to move lower than 7406.90 in the prior session, the Footsie found buyers again around the same price level today at 7403.69. The last time this happened on February 3rd, FTSE gained 1.55% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's low at 7275.00, downside momentum might accelerate should the market break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for FTSE 100. Out of 275 times, FTSE closed higher 55.27% 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 56.73% with an average market move of 0.36%.
With four out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are TECDAX losing -0.44% and CAC closing -0.39% lower. On the flipside the best performer has been BEL20 closing 0.06% higher. Read more