DGE.L closes lower for the 2nd day in a row
Diageo (DGE.L) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DGE.L finished the week -0.94% lower at 2796.50 after edging lower £1.00 (-0.04%) today on high volume. Today's closing price of 2796.50 marks the lowest close since July 30th. Trading £27.00 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DGE.L as at Aug 10, 2018):
Friday's trading range was £35.50 (1.27%), that's slightly below last trading month's daily average range of £35.73. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being below average.
Prices are trading close to a key support level at 2777.00. After spiking up to 2824.50 during the day, the market found resistance at the 20-day moving average at 2822.55.
Although the share is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive.
Selling might accelerate should prices move below the close-by swing low at 2773.00 where further sell stops could get triggered.