NG.L pushes through key technical resistance level
National Grid plc (NG.L) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NG.L finished the week 3.67% higher at 855.70 after surging £15.70 (1.87%) today, significantly outperforming the FTSE 100 (-0.5%). This is the biggest single-day gain in over three weeks. Today's close at 855.70 marks the highest recorded closing price since July 13th. Trading up to £5.70 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 25th, NG.L actually lost -1.00% on the following trading day. Closing above Thursday's high at 850.10, National Grid confirmed its breakout through the previous session high after trading up to £5.70 above it intraday.
Daily Candlestick Chart (NG.L as at Nov 09, 2018):
Friday's trading range has been £16.10 (1.9%), that's slightly below the last trading month's daily average range of £16.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NG.L.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 848.50 (now S1), which is likely to act as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further buying might move prices higher should the market test October's nearby high at 858.70.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for National Grid. Out of 469 times, NG.L closed higher 54.58% 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 53.09% with an average market move of 0.19%.