FTSE runs into sellers again around 6251.96
FTSE 100 Index (FTSE) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FTSE finished Monday at 6225.77 gaining £66.47 (1.08%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FTSE as at Jun 29, 2020):
Monday's trading range has been £129.01 (2.09%), that's slightly below the last trading month's daily average range of £133.71. 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.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 23rd, FTSE actually lost -3.11% on the following trading day.
The stock index managed to close back above the 100-day moving average at 6167.93 for the first time since June 23rd. After having been unable to move above 6262.10 in the previous session, FTSE 100 ran into sellers again around the same price level today, missing to move higher than 6251.96.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 6262.10 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for FTSE 100. Out of 378 times, FTSE closed higher 59.52% 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 56.61% with an average market move of 0.19%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are DAX gaining 1.18% and CAC closing 0.73% higher. On the flipside the worst performer has been TECDAX closing -0.48% lower. Read more