SGRO.L closes within prior day's range
Segro (SGRO.L) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SGRO.L ended the week -1.05% lower at 603.00 after losing £2.80 (-0.46%) today, slightly underperforming the FTSE 100 (-0.16%). Today's close at 603.00 marks the lowest recorded closing price since April 3rd. Trading £4.20 higher after the open, Segro was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SGRO.L as at Oct 12, 2018):
Friday's trading range has been £11.20 (1.84%), that's slightly above the last trading month's daily average range of £9.26. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SGRO.L.
Prices are trading close to the key technical resistance level at 606.40 (R1). After having been unable to move lower than 600.00 in the previous session, the share found buyers again around the same price level today at 601.20.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 630.22. The last time this happened on Monday, SGRO.L gained 0.74% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 600.00 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) below 30" stand out. Its common bullish interpretation has been confirmed for Segro. Out of 24 times, SGRO.L closed higher 62.50% 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 58.33% with an average market move of 49.50%.