BATS.L dominated by bears dragging the market lower throughout the day
British American Tobacco p.l.c. (BATS.L) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, BATS.L ended the week -4.45% lower at 3272.00 after tanking £133.00 (-3.91%) today on high volume, strongly underperforming the FTSE 100 (-0.16%). This is the biggest single-day loss in over a month. Today's close at 3272.00 marks the lowest recorded closing price since March 26, 2014. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 3400.50, the share confirmed its breakout through the previous session low after trading up to £180.50 below it intraday.
Daily Candlestick Chart (BATS.L as at Oct 12, 2018):
Friday's trading range has been £188.00 (5.52%), that's far above the last trading month's daily average range of £92.75. 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 BATS.L.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Crossing below the lower Bollinger Band for the first time since August 22nd, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 3513.65 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on August 22nd, BATS.L lost -0.95% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for BATS. Out of 29 times, BATS.L closed higher 75.86% 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 65.52% with an average market move of 1.69%.