NMC.L slumps, losing £148.00 (-5.05%) within a single day
NMC Health Plc (NMC.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NMC.L ended the week 6.18% higher at 2782.00 after tanking £148.00 (-5.05%) today, significantly underperforming the FTSE 100 (-0.36%). This is the biggest single-day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 2896.00, the market confirmed its breakout through the prior session low after trading up to £182.00 below it intraday.
Daily Candlestick Chart (NMC.L as at Jan 11, 2019):
Friday's trading range has been £236.00 (8.0%), that's far above the last trading month's daily average range of £109.80. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NMC.L.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns.
After trading down to 2714.00 earlier during the day, NMC Health bounced off the key technical support level at 2770.00 (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 Tuesday, NMC.L gained 3.61% on the following trading day. The stock closed back below the 20-day moving average at 2819.60.
Although 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 nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Belt-hold" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NMC Health. Out of 25 times, NMC.L closed higher 64.00% 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 10 trading days, showing a win rate of 64.00% with an average market move of 2.51%.