FTSE breaks above 20-day moving average for the first time since February 19th
FTSE 100 Index (FTSE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FTSE finished Thursday at 5815.73 gaining £127.53 (2.24%). Trading up to £184.85 lower after the open, FTSE 100 managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 19th, FTSE gained 0.76% on the following trading day. Closing above Wednesday's high at 5741.40, the market confirmed its breakout through the prior session high after trading up to £74.33 above it intraday.
Daily Candlestick Chart (FTSE as at Mar 26, 2020):
Thursday's trading range has been £312.38 (5.49%), that's slightly below the last trading month's daily average range of £328.91. 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 slightly higher than usual for FTSE.
The index managed to close above the 20-day moving average at 5807.81 for the first time since February 19th. Prices are trading close to the key technical resistance level at 5891.60 (R1).
While the stock index 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 six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for FTSE 100. Out of 615 times, FTSE closed higher 54.63% 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 four trading days, showing a win rate of 54.96% with an average market move of 0.06%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 2.9% and CAC closing 2.51% higher. None of the markets ended the day in the red. Read more