AAL.L pushes through 100-day moving average
Anglo American plc (AAL.L) Technical Analysis Report for Oct 12, 2018
AAL.L finished the week 0.89% higher at 1684.00 after surging £64.00 (3.95%) today on high volume, significantly outperforming the FTSE 100 (-0.16%). This is the biggest single-day gain in over three weeks.
Daily Candlestick Chart (AAL.L as at Oct 12, 2018):
Friday's trading range has been £70.00 (4.23%), that's far above the last trading month's daily average range of £44.54. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AAL.L.
One bullish candlestick pattern matches today's price action, the Morning Star.
The share managed to break above the 100-day moving average at 1671.87 today. After spiking up to 1712.20 during the day, the stock found resistance at the 200-day moving average at 1697.26. The last time this happened on Tuesday, AAL.L lost -3.42% on the following trading day.
Anglo American shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Morning Star" stand out. Its common bullish interpretation has been confirmed for Anglo American. Out of 3 times, AAL.L closed higher 66.67% 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 100.00% with an average market move of 7.30%.