SGE.L pushes through key technical resistance level
Sage Group (SGE.L) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
SGE.L ended the week 2.14% higher at 564.00 after gaining £8.00 (1.44%) today on high volume, strongly outperforming the FTSE 100 (-0.16%). Today's close at 564.00 marks the highest recorded closing price since October 3rd. Closing above Thursday's high at 560.60, the stock confirmed its breakout through the prior session high after trading up to £8.80 above it intraday.
Daily Candlestick Chart (SGE.L as at Oct 12, 2018):
Friday's trading range has been £10.60 (1.9%), that's slightly below the last trading month's daily average range of £13.08. 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 higher than usual for SGE.L.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 12th, SGE.L lost -0.96% on the following trading day.
Buyers managed to take out the key technical resistance level at 563.80 (now S1), which is likely to act as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Sage Group. Out of 125 times, SGE.L closed higher 55.20% 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 65.60% with an average market move of 0.93%.