N100 pushes through Tuesday's high
Euronext 100 (N100) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, N100 finished Wednesday at 981.70 gaining €8.40 (0.86%). Closing above Tuesday's high at 980.16, the index confirmed its breakout through the prior session high after trading up to €6.14 above it intraday.
Daily Candlestick Chart (N100 as at Aug 05, 2020):
Wednesday's trading range has been €8.08 (0.82%), that's below the last trading month's daily average range of €14.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for N100.
After spiking up to 986.30 during the day, the stock index found resistance at the 50-day moving average at 983.72. The last time this happened on May 15th, N100 actually gained 4.44% on the following trading day.
While Euronext is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 990.92 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Euronext. Out of 27 times, N100 closed higher 62.96% 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 77.78% with an average market move of 1.16%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are FTSE gaining 1.14% and CAC closing 0.9% higher. On the flipside the worst performer has been TECDAX closing -0.1% lower. Read more