N100 dominated by bulls lifting the market higher throughout the day
Euronext 100 (N100) Technical Analysis Report for Jan 17, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, N100 ended the week 1.1% higher at 1170.06 after surging €10.86 (0.94%) today. This is the biggest single-day gain in over two weeks. Today's close at 1170.06 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (N100 as at Jan 17, 2020):
Friday's trading range has been €7.73 (0.66%), that's slightly above the last trading month's daily average range of €7.71. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for N100.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since December 16, 2019, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 1154.20 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on December 16, 2019, N100 actually lost -0.48% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Euronext. Out of 105 times, N100 closed higher 52.38% 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 62.86% with an average market move of 0.42%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are CAC gaining 1.02% and FTSE closing 0.85% higher. None of the markets ended the day in the red. Read more