HL.L closes within prior day's range
Hargreaves Lansdown (HL.L) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
HL.L ended the week -3.08% lower at 1843.00 after gaining £25.00 (1.38%) today, slightly outperforming the FTSE 100 (1.1%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HL.L as at Dec 07, 2018):
Friday's trading range has been £54.00 (2.93%), that's slightly above the last trading month's daily average range of £49.20. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HL.L.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on October 22nd, HL.L lost -4.15% on the following trading day.
Prices are trading close to the key technical support level at 1798.00 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 1810.00 where further sell stops could get activated. Further selling might move prices lower should the market test November's nearby low at 1776.50.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Hargreaves Lansdown. Out of 678 times, HL.L closed higher 50.88% 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 61.06% with an average market move of 1.36%.