BNZL.L finds buyers at key support level
Bunzl (BNZL.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
BNZL.L finished the week 3.65% higher at 2442.00 after flat today, slightly outperforming the FTSE 100 (-0.36%). Trading £18.00 higher after the open, Bunzl was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BNZL.L as at Jan 11, 2019):
Friday's trading range has been £38.00 (1.56%), that's slightly below the last trading month's daily average range of £48.25. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BNZL.L.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading down to 2423.00 earlier during the day, the market bounced off the key technical support level at 2432.00 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Monday, BNZL.L gained 1.87% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Bunzl. Out of 485 times, BNZL.L closed higher 55.05% 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 60.82% with an average market move of 1.05%.