FRES.L stuck within tight trading range
Fresnillo plc (FRES.L) Technical Analysis Report for Jun 14, 2018 | by Techniquant Editorial Team
FRES.L ended Thursday at 1206.00 gaining £18.00 (1.52%) on high volume. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (FRES.L as at Jun 14, 2018):
Thursday's trading range was £42.00 (3.55%), that's slightly above last trading month's daily average range of £34.95. Weekly volatility is also higher, being way above the markets average with the monthly volatility being above average. Prices continued to consolidate within a tight trading range between 1168.00 and 1218.00 which it has been in now for the last three days.
Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Breaking through the key resistance level at 1202.00 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 1237.00. After having been unable to move lower than 1168.00 in the previous session, the share found buyers again around the same price level today at 1169.50.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 1150.50, downside momentum might accelerate should Fresnillo plc break out to new lows for the year.