AZN.L plummets, losing £211.00 (-3.56%) within a single day
AstraZeneca (AZN.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
AZN.L finished the week -6.19% lower at 5712.00 after tanking £211.00 (-3.56%) today, notably underperforming the FTSE 100 (-0.36%). This is the biggest single-day loss in over two weeks. The last time we've seen such an unusually strong single-day loss on December 27, 2018, AZN.L actually gained 2.34% on the following trading day. Today's close at 5712.00 marks the lowest recorded closing price since October 15, 2018. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 5828.00, the market confirmed its breakout through the previous session low after trading up to £116.00 below it intraday.
Daily Candlestick Chart (AZN.L as at Jan 11, 2019):
Friday's trading range has been £200.00 (3.4%), that's far above the last trading month's daily average range of £133.35. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AZN.L.
Two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 5615.00 (S1). The stock closed back below the 100-day moving average at 5919.20. After having been unable to move above 5923.00 in the prior session, AstraZeneca ran into sellers again around the same price level today, missing to move higher than 5912.00.
Crossing below the lower Bollinger Band for the first time since December 27, 2018, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 5951.35 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Further selling could move prices lower should the market test December's nearby low at 5689.00.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Closing Marubozu" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for AstraZeneca. Out of 37 times, AZN.L closed higher 62.16% 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 54.05% with an average market move of 0.79%.