ESV closes within prior day's range after lackluster session
Ensco plc Class A (ESV) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
ESV ended the week 4.31% higher at 4.36 after losing $0.16 (-3.54%) today on low volume, notably underperforming the S&P 500 (-0.01%). 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 (ESV as at Jan 11, 2019):
Friday's trading range has been $0.15 (3.42%), that's far below the last trading month's daily average range of $0.32. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for ESV.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on November 7, 2018, ESV lost -7.72% on the following trading day.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 4.64 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Ensco plc. Out of 721 times, ESV closed lower 49.79% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.57% with an average market move of -0.56%.