FTSE closes above its opening price after recovering from early selling pressure


FTSE 100 Index (FTSE) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team

Highlights

FTSE closes above its opening price after recovering from early selling pressure
FTSE finds support at 50-day moving average
FTSE closes within previous day's range

Overview

FTSE ended Thursday at 6147.14 gaining £23.44 (0.38%). Trading up to £94.44 lower after the open, the Footsie managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.

Daily Candlestick Chart (FTSE as at Jun 25, 2020):

Daily technical analysis candlestick chart for FTSE 100 Index (FTSE) as at Jun 25, 2020

Thursday's trading range has been £133.19 (2.17%), that's slightly below the last trading month's daily average range of £134.57. 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.

Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the In-Neck Pattern. The last time a Takuri Line showed up on February 26th, FTSE actually lost -3.49% on the following trading day.

After trading as low as 6029.25 during the day, the market found support at the 50-day moving average at 6032.70.

Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.

As prices are trading close to June's low at 5952.40, downside momentum might speed up should the index mark new lows for the month.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for FTSE 100. Out of 655 times, FTSE closed higher 53.59% 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 54.66% 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 1.68% and CAC closing 0.97% higher. None of the markets ended the day in the red. Read more


Market Conditions for FTSE as at Jun 25, 2020

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