BNZL.L runs into sellers again around 2223.00
Bunzl (BNZL.L) Technical Analysis Report for Oct 12, 2018
BNZL.L finished the week -4.31% lower at 2200.00 after gaining £7.00 (0.32%) today, slightly outperforming the FTSE 100 (-0.16%). Trading £22.00 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (BNZL.L as at Oct 12, 2018):
Friday's trading range has been £30.00 (1.36%), that's slightly below the last trading month's daily average range of £38.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for BNZL.L.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Doji showed up on September 13th, BNZL.L gained 1.29% on the following trading day.
The market managed to break above the 200-day moving average at 2196.68 today for the first time since May 1st. After having been unable to move above 2217.00 in the previous session, Bunzl ran into sellers again around the same price level today, failing to move higher than 2223.00.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 2352.10.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Bunzl. Out of 72 times, BNZL.L closed higher 50.00% 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 65.28% with an average market move of 1.35%.