MRW.L finds buyers at key support level
Morrisons (MRW.L) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
MRW.L finished the week -2.08% lower at 247.35 after losing £0.95 (-0.38%) today, slightly underperforming the FTSE 100 (-0.16%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MRW.L as at Oct 12, 2018):
Friday's trading range has been £3.00 (1.2%), that's below the last trading month's daily average range of £3.69. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MRW.L.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 246.65 earlier during the day, the market bounced off the key technical support level at 246.90 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on October 3rd, MRW.L actually lost -1.23% on the following trading day. Prices are trading close to the key technical resistance level at 250.40 (R1). After having been unable to move above 249.15 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 249.65.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Morrisons. Out of 543 times, MRW.L closed higher 53.59% 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 52.12% with an average market move of 0.23%.