SHP.L runs into sellers again around 4325.00
Shire plc (SHP.L) Technical Analysis Report for Oct 12, 2018
SHP.L ended the week -2.42% lower at 4300.50 after gaining £48.00 (1.13%) today, significantly outperforming the FTSE 100 (-0.16%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SHP.L as at Oct 12, 2018):
Friday's trading range has been £72.00 (1.69%), that's slightly below the last trading month's daily average range of £74.97. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SHP.L.
One bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 4325.00 during the day, Shire found resistance at the 100-day moving average at 4324.62. After having been unable to move above 4313.50 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 4325.00.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 4487.85. The last time this happened on September 11th, SHP.L gained 0.98% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Shire. Out of 542 times, SHP.L closed higher 52.40% 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 57.01% with an average market move of 0.65%.