FTSE dominated by bulls lifting the market higher throughout the day
FTSE 100 Index (FTSE) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
FTSE finished Tuesday at 6320.12 gaining £75.52 (1.21%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 6309.00, the Footsie confirmed its breakout through the previous session high after trading up to £33.19 above it intraday.
Daily Candlestick Chart (FTSE as at Jun 23, 2020):
Tuesday's trading range has been £97.57 (1.56%), that's below the last trading month's daily average range of £127.59. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FTSE.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 2nd, FTSE actually gained 2.61% on the following trading day.
The index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could speed up should prices move below the nearby swing low at 6184.90 where further sell stops might get triggered. As prices are trading close to June's high at 6511.80, upside momentum could accelerate should the market mark new highs for the month.
Among the five 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 511 times, FTSE closed higher 54.79% 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 55.58% 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 DAX gaining 2.13% and TECDAX closing 1.64% higher. None of the markets ended the day in the red. Read more