SDR.L closes below its opening price unable to hold early session gains
Schroders PLC (SDR.L) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
SDR.L ended the week -6.02% lower at 2375.00 after gaining £18.00 (0.76%) today, slightly underperforming the FTSE 100 (1.1%). Trading £36.00 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, SDR.L lost -6.06% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SDR.L as at Dec 07, 2018):
Friday's trading range has been £41.00 (1.72%), that's far below the last trading month's daily average range of £70.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SDR.L.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Homing Pigeon.
Unable to break through the key technical resistance level at 2400.00 (R1), the stock closed below it after spiking up to 2416.00 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 2525.70.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 2350.00 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Homing Pigeon" stand out. Its common bullish interpretation has been confirmed for Schroders. Out of 27 times, SDR.L closed higher 62.96% 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 59.26% with an average market move of 1.86%.