GFS.L dominated by bulls lifting the market higher throughout the day
G4S plc (GFS.L) Technical Analysis Report for May 17, 2018
Moving higher for the 2nd day in a row, GFS.L ended Thursday at 266.00 gaining £3.60 (1.37%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 264.30, the stock confirms its breakout through the prior session's high having traded £1.90 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Thursday's trading range was £5.80 (2.21%), that's slightly above last trading month's daily average range of £4.89. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Regardless of a weak opening G4S managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
After trading as low as 260.40 during the day, the market bounced off the key support level at 262.10. The failure to close below the support might increase that levels importance as support going forward. After trading as low as 260.40 during the day, the share found support at the 20-day moving average at 260.51.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. GFS.L managed to break above the 100-day moving average at 263.01 today for the first time since May 11th.
Buying could speed up should prices move above the nearby swing high at 270.80 where further buy stops might get activated. Trading close to March's high at 274.50 we could see further upside momentum if potential buy stops at the level get triggered.
While classical technical analysis indicates a bullish sentiment for the next trading day, our quantitative statistics show a different picture being bearish.