MRO.L finds support at 20-day moving average
Melrose Industries (MRO.L) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MRO.L finished the week 1.36% higher at 216.80 after losing £2.00 (-0.91%) today on low volume. Closing below Thursday's low at 218.10, the stock confirms its breakout through the previous session's low having traded £1.90 below it intraday.
Daily Candlestick Chart (MRO.L as at Aug 10, 2018):
Friday's trading range was £1.90 (0.87%), that's far below last trading month's daily average range of £4.31. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average.
Breaking below the key support level at 217.30 today, it is now likely to act as resistance going forward. After trading as low as 216.20 during the day, the market found support at the 20-day moving average at 216.56.
Although Melrose Industries is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory.
Buying might speed up should prices move above the close-by swing high at 220.80 where further buy stops could get triggered.