III.L climbs to highest close since December 3, 2018
3i (III.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, III.L finished the week 2.64% higher at 825.60 after edging higher £2.60 (0.32%) today, outperforming the FTSE 100 (-0.36%). Today's close at 825.60 marks the highest recorded closing price since December 3, 2018. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (III.L as at Jan 11, 2019):
Friday's trading range has been £12.20 (1.48%), that's far below the last trading month's daily average range of £21.02. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for III.L.
Three candlestick patterns are matching today's price action, the Bearish Doji Star and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on December 11, 2018, III.L gained 1.74% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 788.54.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test December's nearby high at 859.00.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for 3i. Out of 90 times, III.L closed higher 54.44% 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 64.44% with an average market move of 1.53%.