N100 runs into sellers again around 981.65
Euronext 100 (N100) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, N100 ended the month 4.98% higher at 976.54 after gaining €0.94 (0.1%) today. 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 (N100 as at Jun 30, 2020):
Tuesday's trading range has been €11.71 (1.2%), that's far below the last trading month's daily average range of €19.33. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for N100.
Prices are trading close to the key technical resistance level at 988.98 (R1). After having been unable to move above 981.50 in the previous session, the stock index ran into sellers again around the same price level today, missing to move higher than 981.65. The last time this happened on June 19th, N100 lost -0.58% on the following trading day.
Euronext shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 988.98 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 963.71 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Euronext. Out of 786 times, N100 closed higher 55.85% 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 60.31% with an average market move of 0.29%.
With three out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.92% and DAX closing 0.64% higher. On the flipside the worst performers have been FTSE closing -0.9% lower and CAC losing -0.19%. Read more