FTSE closes lower for the 2nd day in a row
FTSE 100 Index (FTSE) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FTSE finished Wednesday at 6157.96 losing £11.74 (-0.19%). 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 Jul 01, 2020):
Wednesday's trading range has been £117.47 (1.9%), that's slightly below the last trading month's daily average range of £131.71. 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.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bullish Hikkake Pattern showed up on April 21st, FTSE gained 2.30% on the following trading day.
After trading down to 6084.48 earlier during the day, the stock index bounced off the key technical support level at 6093.70 (S1). The failure to close below the support could increase that levels significance as support going forward.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 6262.10 where further buy stops could get activated. Further selling might move prices lower should the market test June's nearby low at 5952.40.
Among the five 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 nine trading days, showing a win rate of 54.76% with an average market move of 0.17%.
With three out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 0.3% and BEL20 closing 0.12% higher. On the flipside the worst performers have been DAX closing -0.41% lower and CAC losing -0.18%. Read more