FTSE runs into sellers again around 7745.53
FTSE 100 Index (FTSE) Technical Analysis Report for May 16, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FTSE finished Wednesday at 7734.20 gaining £11.20 (0.15%). Today's closing price of 7734.20 marks the highest close since January 16th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FTSE as at May 16, 2018):
Wednesday's trading range was £27.77 (0.36%), that's far below last trading month's daily average range of £58.57. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 7687.50 and 7752.00 which it has been in now for the last three days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Breaking through the key resistance level at 7728.90 today, it is now likely to act as support going forward. After having been unable to move above 7752.00 in the previous session, FTSE 100 ran into sellers again around the same price level today, failing to move higher than 7745.53.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 7752.00 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 7687.50 where further sell stops might get triggered. With prices trading close to this year's high at 7792.60, upside momentum could speed up should the index be able to break out to new highs for the year.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 0.35% and CAC closing 0.26% higher. On the flipside the worst performer has been BEL20 closing -0.49% lower. Read more