ANTO.L unable to break through key resistance level
Antofagasta plc (ANTO.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ANTO.L finished the week 6.44% higher at 836.20 after losing £7.40 (-0.88%) today, underperforming the FTSE 100 (-0.36%). Trading £16.20 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ANTO.L as at Jan 11, 2019):
Friday's trading range has been £35.00 (4.12%), that's above the last trading month's daily average range of £28.12. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ANTO.L. Prices continued to consolidate within a tight trading range between 826.20 and 866.20 where it has been caught now for the last three trading days.
In spite of a strong opening Antofagasta closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on November 30, 2018, ANTO.L actually gained 7.85% on the following trading day.
Prices are trading close to the key technical support level at 827.40 (S1). Unable to break through the key technical resistance level at 860.00 (R1), the stock closed below it after spiking up to 866.20 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The share found buyers again today around 831.20 for the third trading day in a row after having found demand at 826.20 in the previous session and at 826.80 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 788.92.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 826.20 where further sell stops could get activated. Further buying might move prices higher should the market test December's nearby high at 873.40.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for Antofagasta. Out of 95 times, ANTO.L closed lower 56.84% 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 56.84% with an average market move of -0.62%.