LSE.L closes within prior day's range
London Stock Exchange Group (LSE.L) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
LSE.L ended the week -2.02% lower at 4213.00 after gaining £29.00 (0.69%) today, significantly outperforming the FTSE 100 (-0.5%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LSE.L as at Nov 09, 2018):
Friday's trading range has been £77.00 (1.85%), that's slightly below the last trading month's daily average range of £86.55. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for LSE.L.
Two candlestick patterns are matching today's price action, the Piercing Pattern and the White Candle which are both known as bullish patterns. The last time a Piercing Pattern showed up on September 8, 2017, LSE.L gained 0.93% on the following trading day.
Unable to break through the key technical resistance level at 4242.00 (R1), the share closed below it after spiking up to 4242.00 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Piercing Pattern" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for London Stock. Out of 7 times, LSE.L closed lower 85.71% 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 six trading days, showing a win rate of 71.43% with an average market move of -0.17%.