DLG.L closes within previous day's range after lackluster session
Direct Line Insurance Group PLC (DLG.L) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
DLG.L ended Thursday at 374.80 losing £1.10 (-0.29%) on high volume. Trading up to £1.80 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DLG.L as at May 17, 2018):
Thursday's trading range was £4.00 (1.07%), that's far below last trading month's daily average range of £6.51. Things look different on a weekly scale, where volatility is slightly above the markets average with the monthly volatility being way below average.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After having been unable to move above 376.40 in the prior session, Direct Line ran into sellers again around the same price level today, failing to move higher than 376.30. After trading as low as 372.30 during the day, the market found support at the 200-day moving average at 373.37.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the close-by swing high at 376.40 where further buy stops might get triggered. As prices are trading close to May's high at 379.40, upside momentum could speed up should DLG.L mark new highs for the month.