BLND.L misses to close above 100-day moving average
British Land (BLND.L) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, BLND.L finished the week 3.71% higher at 624.80 after gaining £3.60 (0.58%) today on high volume, significantly outperforming the FTSE 100 (-0.5%). Today's close at 624.80 marks the highest recorded closing price since September 21st. Closing above Thursday's high at 621.20, the market confirmed its breakout through the prior session high after trading up to £6.20 above it intraday.
Daily Candlestick Chart (BLND.L as at Nov 09, 2018):
Friday's trading range has been £10.00 (1.61%), that's slightly below the last trading month's daily average range of £10.84. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BLND.L.
Buyers managed to take out the key technical resistance level at 622.40 (now S1), which is likely to act as support going forward. After spiking up to 627.40 during the day, British Land found resistance at the 100-day moving average at 625.99. The last time this happened on March 6th, BLND.L actually gained 0.76% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 590.90.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Trading close to September's high at 641.40 we could see further upside momentum if potential buy stops at the level get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for British Land. Out of 8 times, BLND.L closed lower 87.50% 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 four trading days, showing a win rate of 62.50% with an average market move of -0.29%.