NG.L breaks back above 50-day moving average
National Grid plc (NG.L) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
NG.L finished the week -0.44% lower at 829.20 after gaining £9.10 (1.11%) today, slightly outperforming the FTSE 100 (1.1%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NG.L as at Dec 07, 2018):
Friday's trading range has been £19.60 (2.41%), that's above the last trading month's daily average range of £15.76. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NG.L.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on October 29th, NG.L gained 1.11% on the following trading day. Regardless of a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
The share managed to close back above the 50-day moving average at 825.03.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 838.00 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Its common bullish interpretation has been confirmed for National Grid. Out of 10 times, NG.L closed higher 60.00% 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 four trading days, showing a win rate of 50.00% with an average market move of -0.14%.