SGRO.L stuck within tight trading range
Segro (SGRO.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
SGRO.L ended the week 2.66% higher at 616.40 after gaining £2.40 (0.39%) today, outperforming the FTSE 100 (-0.36%). Today's close at 616.40 marks the highest recorded closing price since November 28, 2018. Trading £4.80 higher after the open, the stock 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 failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SGRO.L as at Jan 11, 2019):
Friday's trading range has been £8.80 (1.43%), that's below the last trading month's daily average range of £11.30. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGRO.L. Prices continued to consolidate within a tight trading range between 610.60 and 621.40 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man. The last time a Rickshaw-Man showed up on June 5, 2018, SGRO.L gained 1.17% on the following trading day.
Prices are trading close to the key technical support level at 612.20 (S1). Prices are trading close to the key technical resistance level at 623.20 (R1). After having been unable to move lower than 611.80 in the previous session, the share found buyers again around the same price level today at 612.60.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test December's nearby high at 622.00.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Rickshaw-Man" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Segro. Out of 30 times, SGRO.L closed higher 63.33% 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 six trading days, showing a win rate of 63.33% with an average market move of 0.03%.