ANTO.L breaks below Thursday's low
Antofagasta plc (ANTO.L) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
ANTO.L finished the week -7.92% lower at 778.20 after tanking £39.80 (-4.87%) today, strongly underperforming the FTSE 100 (-0.5%). This is the biggest single-day loss in over a month. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 800.00, Antofagasta confirmed its breakout through the previous session low after trading up to £26.20 below it intraday.
Daily Candlestick Chart (ANTO.L as at Nov 09, 2018):
Friday's trading range has been £33.20 (4.11%), that's slightly above the last trading month's daily average range of £30.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ANTO.L.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
After trading down to 773.80 earlier during the day, the stock bounced off the key technical support level at 775.00 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on October 26th, ANTO.L gained 3.41% on the following trading day. The share closed back below the 50-day moving average at 802.45.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. Its common bearish interpretation has been confirmed for Antofagasta. Out of 28 times, ANTO.L closed lower 60.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 64.29% with an average market move of -1.23%.