MNDI.L drops to lowest close since December 23, 2016
Mondi (MNDI.L) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, MNDI.L finished the week -4.62% lower at 1630.50 after edging lower £2.50 (-0.15%) today, strongly underperforming the FTSE 100 (1.1%). Today's close at 1630.50 marks the lowest recorded closing price since December 23, 2016. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MNDI.L as at Dec 07, 2018):
Friday's trading range has been £44.00 (2.65%), that's slightly below the last trading month's daily average range of £49.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MNDI.L.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 1629.00 in the prior session, the stock found buyers again around the same price level today at 1627.50. The last time this happened on November 23rd, MNDI.L gained 1.21% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 1734.75.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Mondi. Out of 132 times, MNDI.L closed higher 53.03% 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 59.85% with an average market move of 1.16%.