N100 fails to close above 200-day moving average
Euronext 100 (N100) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, N100 finished Wednesday at 998.92 gaining €2.95 (0.3%). Today's close at 998.92 marks the highest recorded closing price since August 26th. Trading up to €3.84 lower after the open, the index managed to reverse during the session as bulls took control ending the day above its opening price. 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 Sep 16, 2020):
Wednesday's trading range has been €9.21 (0.92%), that's below the last trading month's daily average range of €15.32. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for N100. Prices continued to consolidate within a tight trading range between 981.99 and 1001.41 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 988.98 (S1). After spiking up to 1001.41 during the day, the market found resistance at the 200-day moving average at 1000.43. The last time this happened on September 3rd, N100 lost -1.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 1012.24, upside momentum might speed up should the stock index mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 200" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Euronext. Out of 17 times, N100 closed higher 64.71% 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 two trading days, showing a win rate of 64.71% with an average market move of 0.02%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 0.88% and TECDAX closing 0.79% higher. On the flipside the worst performer has been FTSE closing -0.44% lower. Read more