FTSE closes below its opening price unable to hold early session gains


FTSE 100 Index (FTSE) Technical Analysis Report for Jun 24, 2020 | by Techniquant Editorial Team

Highlights

FTSE breaks back below 100-day moving average
FTSE closes below its opening price unable to hold early session gains
FTSE breaks below Tuesday's low

Overview

FTSE ended Wednesday at 6123.69 tanking £196.41 (-3.11%). Trading £75.50 higher after the open, the Footsie was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 10th, FTSE lost -3.99% on the following trading day. Closing below Tuesday's low at 6244.60, FTSE 100 confirmed its breakout through the prior session low after trading up to £120.91 below it intraday.

Daily Candlestick Chart (FTSE as at Jun 24, 2020):

Daily technical analysis candlestick chart for FTSE 100 Index (FTSE) as at Jun 24, 2020

Wednesday's trading range has been £196.43 (3.15%), that's far above the last trading month's daily average range of £132.40. 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 slightly lower than usual for FTSE.

Two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns.

The stock index closed back below the 100-day moving average at 6203.13 for the first time since June 18th.

The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.

Among the 12 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 277 times, FTSE closed higher 56.32% 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 57.04% with an average market move of 0.35%.

With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are BEL20 losing -3.85% and DAX closing -3.43% lower. None of the markets managed to end the day in the green. Read more


Market Conditions for FTSE as at Jun 24, 2020

Loading Market Conditions for FTSE (FTSE 100 Index)...
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