N100 runs into sellers around 1177.71 for the third day in a row
Euronext 100 (N100) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, N100 finished the week 1.14% higher at 1174.35 after edging lower €1.78 (-0.15%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (N100 as at Feb 14, 2020):
Friday's trading range has been €6.18 (0.53%), that's below the last trading month's daily average range of €10.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for N100.
Unable to break through the key technical resistance level at 1177.68 (R1), the stock index closed below it after spiking up to 1177.71 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on February 7th, N100 lost -0.11% on the following trading day. The market ran into sellers again today around 1177.71 for the third trading day in a row after having found sellers at 1176.13 in the prior session and at 1177.68 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 1163.21 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Euronext. Out of 119 times, N100 closed higher 57.14% of the time on the next trading day after the market condition occurred.
With four out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are FTSE losing -0.58% and TECDAX closing -0.44% lower. On the flipside the best performer has been BEL20 closing 0.06% higher. Read more