FTSE finds buyers again around 6225.53
FTSE 100 Index (FTSE) Technical Analysis Report for Jun 22, 2020 | by Techniquant Editorial Team
FTSE finished Monday at 6247.02 losing £45.58 (-0.72%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FTSE as at Jun 22, 2020):
Monday's trading range has been £83.51 (1.33%), that's below the last trading month's daily average range of £129.55. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FTSE. Prices continued to consolidate within a tight trading range between 6184.90 and 6319.80 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the stock index closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on June 8th, FTSE lost -2.12% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
After having been unable to move lower than 6224.10 in the prior session, the Footsie found buyers again around the same price level today at 6225.53.
FTSE 100 shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the close-by swing high at 6319.80 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 6184.90 where further sell stops might get activated.
Among the seven 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 511 times, FTSE closed higher 52.64% 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 58.90% with an average market move of 0.27%.
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 -1.8% and CAC closing -0.62% lower. On the flipside the best performer has been BEL20 closing 0.2% higher. Read more