NG.L closes higher for the 4th day in a row
National Grid plc (NG.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NG.L finished the week 2.32% higher at 801.50 after gaining £0.10 (0.01%) today, slightly outperforming the FTSE 100 (-0.36%). Today's close at 801.50 marks the highest recorded closing price since December 17, 2018. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NG.L as at Jan 11, 2019):
Friday's trading range has been £7.70 (0.96%), that's below the last trading month's daily average range of £20.00. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NG.L.
After trading down to 798.50 earlier during the day, National Grid bounced off the key technical support level at 799.70 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Wednesday, NG.L gained 1.47% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the two 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 National Grid. Out of 568 times, NG.L closed higher 55.28% 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 54.58% with an average market move of 0.52%.