AHT.L runs into sellers again around 2038.00
Ashtead Group (AHT.L) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
AHT.L ended the week -13.36% lower at 1994.50 after gaining £15.50 (0.78%) today on high volume, outperforming the FTSE 100 (-0.16%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AHT.L as at Oct 12, 2018):
Friday's trading range has been £50.50 (2.49%), that's slightly below the last trading month's daily average range of £55.92. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AHT.L.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Wednesday, AHT.L lost -3.65% on the following trading day.
After having been unable to move above 2030.00 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 2038.00.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 2291.98.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 1962.00 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Ashtead Group. Out of 117 times, AHT.L closed higher 56.41% 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 72.65% with an average market move of 4.18%.