N100 dominated by bulls lifting the market higher throughout the day


Euronext 100 (N100) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

N100 breaks above 20-day moving average for the first time since February 21st
N100 dominated by bulls lifting the market higher throughout the day
N100 closes higher for the 3rd day in a row
N100 pushes through Wednesday's high

Overview

Moving higher for the 3rd day in a row, N100 finished Thursday at 881.91 gaining €20.89 (2.43%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 868.45, the market confirmed its breakout through the prior session high after trading up to €13.46 above it intraday.

Daily Candlestick Chart (N100 as at Mar 26, 2020):

Daily technical analysis candlestick chart for Euronext 100 (N100) as at Mar 26, 2020

Thursday's trading range has been €47.25 (5.61%), that's slightly above the last trading month's daily average range of €41.42. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for N100.

Three candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on Tuesday, N100 gained 3.82% on the following trading day.

The index managed to close above the 20-day moving average at 881.26 for the first time since February 21st.

Although Euronext is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Euronext. Out of 91 times, N100 closed higher 57.14% 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 63.74% with an average market move of 0.23%.

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 2.9% and CAC closing 2.51% higher. None of the markets ended the day in the red. Read more


Market Conditions for N100 as at Mar 26, 2020

Loading Market Conditions for N100 (Euronext 100)...
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