FTSE runs into sellers again around 6119.24

FTSE 100 Index (FTSE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team


FTSE breaks back below 100-day moving average
FTSE finds buyers at key support level
FTSE runs into sellers again around 6119.24
FTSE closes within previous day's range after lackluster session


FTSE ended Wednesday at 6078.48 losing £27.02 (-0.44%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (FTSE as at Sep 16, 2020):

Daily technical analysis candlestick chart for FTSE 100 Index (FTSE) as at Sep 16, 2020

Wednesday's trading range has been £61.61 (1.01%), that's far below the last trading month's daily average range of £99.95. 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.

During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.

After trading down to 6057.63 earlier during the day, the stock index bounced off the key technical support level at 6060.20 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 8th, FTSE gained 1.39% on the following trading day. The Footsie closed back below the 100-day moving average at 6092.78. After having been unable to move above 6123.70 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 6119.24.

FTSE 100 shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.

Buying could speed up should prices move above the close-by swing high at 6123.70 where further buy stops might get triggered.

Among the four 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 381 times, FTSE closed higher 60.10% 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 54.33% with an average market move of 0.16%.

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 0.88% and TECDAX closing 0.79% higher. None of the markets ended the day in the red. Read more

Market Conditions for FTSE as at Sep 16, 2020

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