EZJ.L closes within prior day's range after lackluster session
easyJet plc (EZJ.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
EZJ.L finished Wednesday at 1282.00 gaining £16.50 (1.3%), slightly outperforming the FTSE 100 (0.81%). 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 (EZJ.L as at Feb 13, 2019):
Wednesday's trading range has been £32.00 (2.54%), that's below the last trading month's daily average range of £42.62. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EZJ.L.
In spite of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1281.50 (now S1), which is likely to act as support going forward. After having been unable to move lower than 1252.00 in the previous session, the stock found buyers again around the same price level today at 1256.00. The last time this happened on Monday, EZJ.L actually lost -1.67% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 1310.50 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 1252.00 where further sell stops could get triggered.
Among the eight 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 bullish for easyJet. Out of 787 times, EZJ.L closed higher 53.37% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.85% with an average market move of 1.10%.