BT.A.L closes above its opening price after recovering from early selling pressure
BT Group (BT.A.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
BT.A.L. L finished Wednesday at 229.45 gaining £1.65 (0.72%), slightly underperforming the FTSE 100 (0.81%). Trading up to £1.50 lower after the open, BT Group managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 23rd, BT.A.L. L actually lost -0.69% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BT.A.L as at Feb 13, 2019):
Wednesday's trading range has been £3.95 (1.73%), that's below the last trading month's daily average range of £5.78. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BT.A.L. L. Prices continued to consolidate within a tight trading range between 226.20 and 233.80 where it has been caught now for the whole last trading week.
After trading down to 226.20 earlier during the day, the stock bounced off the key technical support level at 227.20 (S1). The failure to close below the support could increase that levels importance as support going forward.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the nearby swing high at 232.90 where further buy stops could get activated. With prices trading close to this year's low at 221.00, downside momentum might speed up should the market break out to new lows for the year.
Among the five 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 BT Group. Out of 405 times, BT.A.L. L closed higher 58.27% 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 54.81% with an average market move of 0.66%.