ITRK.L unable to break through key resistance level
Intertek (ITRK.L) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
ITRK.L finished the week -2.24% lower at 4592.00 after gaining £83.00 (1.84%) today, outperforming the FTSE 100 (1.1%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ITRK.L as at Dec 07, 2018):
Friday's trading range has been £151.00 (3.32%), that's far above the last trading month's daily average range of £113.85. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ITRK.L.
Unable to break through the key technical resistance level at 4593.00 (R1), the market closed below it after spiking up to 4687.00 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on November 30th, ITRK.L actually gained 3.81% on the following trading day.
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 4485.00 where further sell stops could get activated. Further selling might move prices lower should the market test November's nearby low at 4462.00.
Among the two 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 Intertek. Out of 655 times, ITRK.L closed higher 51.60% 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 58.78% with an average market move of 0.91%.