NXT.L closes within previous day's range
Next plc (NXT.L) Technical Analysis Report for Oct 12, 2018
NXT.L ended the week 1.01% higher at 5394.00 after gaining £140.00 (2.66%) today, notably outperforming the FTSE 100 (-0.16%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NXT.L as at Oct 12, 2018):
Friday's trading range has been £186.00 (3.5%), that's above the last trading month's daily average range of £144.30. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NXT.L.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
The stock managed to break above the 200-day moving average at 5358.50 today for the first time since September 25th. When this moving average was taken out the last time on September 25th, NXT.L actually lost -2.14% on the following trading day. Prices are trading close to the key technical resistance level at 5488.00 (R1). After having been unable to move lower than 5254.00 in the previous session, the market found buyers again around the same price level today at 5272.00.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 5254.00 where further sell stops could get triggered.
Among the eight 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 Next plc. Out of 497 times, NXT.L closed higher 56.74% 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 57.34% with an average market move of 0.91%.