BKG.L runs into sellers around 3858.00 for the third day in a row

Berkeley Group Holdings (BKG.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team


BKG.L breaks back above 20-day moving average
BKG.L runs into sellers around 3858.00 for the third day in a row
BKG.L unable to break through key resistance level
BKG.L still stuck within tight trading range
BKG.L closes within previous day's range


BKG.L finished Wednesday at 3807.00 gaining £32.00 (0.85%), slightly outperforming the FTSE 100 (0.81%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (BKG.L as at Feb 13, 2019):

Daily technical analysis candlestick chart for Berkeley Group Holdings (BKG.L) as at Feb 13, 2019

Wednesday's trading range has been £77.00 (2.04%), that's slightly above the last trading month's daily average range of £72.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for BKG.L. Prices continued to consolidate within a tight trading range between 3758.00 and 3871.00 where it has been caught now for the whole last trading week.

During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.

The market managed to close back above the 20-day moving average at 3793.80. When this moving average was crossed above the last time on February 8th, BKG.L gained 1.19% on the following trading day. Unable to break through the key technical resistance level at 3824.00 (R1), Berkeley Group closed below it after spiking up to 3858.00 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The share ran into sellers again today around 3858.00 for the third trading day in a row after having found sellers at 3871.00 in the previous session and at 3859.00 two days ago.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying could speed up should prices move above the nearby swing high at 3871.00 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 3775.00 where further sell stops might get triggered. As prices are trading close to February's low at 3751.00, downside momentum could speed up should the stock mark new lows for the month.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for Berkeley Group. Out of 608 times, BKG.L closed higher 51.48% 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 58.55% with an average market move of 0.97%.

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