BDEV.L rallies 5.33% on high volume
Barratt Developments (BDEV.L) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
BDEV.L ended the week -7.72% lower at 513.80 after surging £26.00 (5.33%) today on high volume, strongly outperforming the FTSE 100 (-0.16%). This is the biggest single-day gain in over a year. Closing above Thursday's high at 513.40, the market confirmed its breakout through the previous session high after trading up to £8.80 above it intraday.
Daily Candlestick Chart (BDEV.L as at Oct 12, 2018):
Friday's trading range has been £32.10 (6.51%), that's far above the last trading month's daily average range of £11.73. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BDEV.L.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 514.20 (R1), the share closed below it after spiking up to 522.20 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 487.80 in the prior session, the stock found buyers again around the same price level today at 490.10. The last time this happened on Wednesday, BDEV.L actually lost -12.14% on the following trading day.
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 though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 554.97.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Barratt Developments. Out of 222 times, BDEV.L closed higher 57.21% 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 56.31% with an average market move of 0.69%.