SBRY.L rallies 2.11% closing £6.50 higher
Sainsbury's (SBRY.L) Technical Analysis Report for Jun 14, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SBRY.L ended Thursday at 314.70 surging £6.50 (2.11%). This is the biggest single day gain in over three weeks. Today's closing price of 314.70 marks the highest close since June 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 309.20, the stock confirms its breakout through the prior session's high having traded £5.60 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SBRY.L as at Jun 14, 2018):
Thursday's trading range was £10.70 (3.49%), that's far above last trading month's daily average range of £5.50. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average.
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.
After trading as low as 304.10 during the day, the market bounced off the key support level at 304.70. The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 304.80 in the previous session, the share found buyers again around the same price level today at 304.10.
Although Sainsbury's is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive. SBRY.L managed to break above the 20-day moving average at 313.07 today for the first time since March 29th.
As prices are trading close to June's high at 321.50, upside momentum might speed up should the stock mark new highs for the month.