ESV closes higher for the 2nd day in a row
Ensco plc Class A (ESV) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ESV finished Wednesday at 4.48 edging higher $0.03 (0.67%), slightly outperforming the S&P 500 (0.3%). Trading $0.14 higher after the open, the market 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 missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ESV as at Feb 13, 2019):
Wednesday's trading range has been $0.17 (3.79%), that's below the last trading month's daily average range of $0.21. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ESV.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 4.61 (R1), the stock closed below it after spiking up to 4.63 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on January 29th, ESV lost -1.76% on the following trading day.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might accelerate should prices move below the nearby swing low at 4.30 where further sell stops could get activated. With prices trading close to this year's high at 4.80, upside momentum might speed up should Ensco plc be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Ensco plc. Out of 444 times, ESV closed lower 54.05% 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 54.95% with an average market move of -0.91%.