Since Tuesday the UK 100 has traded no higher then 7480, but no lower than 7390. This 90 point range might not sound exciting to traders looking for sharp moves of +/- 2%, and may even discourage some.

However, would it peak your interest if I tell you there was potential to trade worth >350 points over the course of the past four days?

While the overall market move this week may have been  insignificant, the trading ranges offered multiple small moves that add up to a much more significant total, allowing traders to benefit from what may be perceived as a quiet market.

Perfect terrain for the ‘range trader’.

On eight occasions, the UK Index rose or fell by >0.4% in a single move before changing course at a significant support or resistance level. By identifying these trend reversals there was potential to trade 360 points of movement, while several other smaller moves were also in the offing for those looking for even tighter ranges. As the old adage goes, the trend is your friend.

The best range-trade example came on Thursday. The index may have opened at 7450 and closed at 7443 for a rather dull 7pt move. Au contraire. Having been as low as 7397 around 10:30am, this means a nice 100p round trip was on offer

By trading close to the tops and bottoms – within five points – there was the potential to trade over 75 points of movement – 10x greater than the difference between the open and close.

But it’s not only the UK’s blue chip index that has been trading within a range this week. The UK 100 ‘s Mining sector, one of the most heavily weighted and traded sectors, has had multiple;

Anglo American (AAL), Antofagasta (ANTO) and Glencore (GLEN) have all exhibited trading ranges over the past week.

Anglo remained within a 950-995p (5%) range, steadily tightening over the week, looking set for a break higher next week. Peer Glencore has remained bound within a 10p (3.5%) range since Tuesday, also narrowing.

Finally, Antofagasta has offered a particularly interesting range since Wednesday’s open. In a rising channel, never exceeding 3.5%, the copper miner touched support or resistance levels eight times. Not bad for three days of trading.

So what’s stopping you from getting involved in trading these attractive trading ranges?

For someone new to trading, the prospect of identifying range-trading stocks may be difficult. Alternatively, they might lack the resources to do so, resorting to untrustworthy sources of information when placing trades.

However, with support from Accendo Markets, this process becomes so much easier. Our award-winning research department specialises in technical analysis of indices and stocks, releasing daily publications that include the most interesting charts of the day to help you identify trading opportunities.

Why not try our research yourself and get it delivered directly to your inbox. Who knows, by the end of the trial could be a range trader yourself!

Joe Nguyen, Trader, 23 June