KGF.L closes lower for the 2nd day in a row
Kingfisher plc (KGF.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, KGF.L finished the week 5.01% higher at 226.20 after edging lower £1.30 (-0.57%) today, slightly underperforming the FTSE 100 (-0.36%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (KGF.L as at Jan 11, 2019):
Friday's trading range has been £8.20 (3.59%), that's above the last trading month's daily average range of £6.45. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for KGF.L.
Unable to break through the key technical resistance level at 228.70 (R1), the share closed below it after spiking up to 228.70 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
While 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.
Buying might speed up should prices move above the nearby swing high at 232.50 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Kingfisher plc. Out of 432 times, KGF.L closed lower 54.40% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 48.15% with an average market move of -0.18%.