ESV finds buyers around 4.22 for the third day in a row
Ensco plc Class A (ESV) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ESV ended the week 5.75% higher at 4.23 after losing $0.03 (-0.7%) today, significantly underperforming the S&P 500 (0.5%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ESV as at Mar 15, 2019):
Friday's trading range has been $0.10 (2.37%), that's far below the last trading month's daily average range of $0.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ESV.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Shooting Star.
Prices are trading close to the key technical support level at 4.12 (S1). The market found buyers again today around 4.22 for the third trading day in a row after having found demand at 4.23 in the prior session and at 4.22 two days ago. The last time this happened on February 14th, ESV gained 6.46% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the nearby swing high at 4.39 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Its common bearish interpretation has been confirmed for Ensco plc. Out of 52 times, ESV closed lower 55.77% 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 nine trading days, showing a win rate of 51.92% with an average market move of -0.66%.