AAL.L climbs to highest close since June 11, 2018
Anglo American plc (AAL.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AAL.L ended the week 3.31% higher at 1814.60 after edging higher £6.40 (0.35%) today, outperforming the FTSE 100 (-0.36%). Today's close at 1814.60 marks the highest recorded closing price since June 11, 2018. Trading £25.00 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, AAL.L actually gained 2.92% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AAL.L as at Jan 11, 2019):
Friday's trading range has been £47.20 (2.59%), that's slightly above the last trading month's daily average range of £44.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AAL.L.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 1794.40 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 1774.40 where further sell stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Anglo American. Out of 419 times, AAL.L closed higher 53.94% 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 52.98% with an average market move of 0.94%.