SKG.L dominated by bulls lifting the market higher throughout the day
Smurfit Kappa (SKG.L) Technical Analysis Report for Jun 14, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SKG.L ended Thursday at 3052.00 surging £96.00 (3.25%). This is the biggest single day gain in over two weeks. Today's closing price of 3052.00 marks the highest close since June 1st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 2970.00, the market confirms its breakout through the prior session's high having traded £102.00 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SKG.L as at Jun 14, 2018):
Thursday's trading range was £148.00 (5.05%), that's above last trading month's daily average range of £104.40. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being above average.
Breaking through the key resistance level at 3046.00 today, it is now likely to act as support going forward. The stock found buyers again today around 2924.00 for the third trading day in a row after having found demand at 2916.00 in the previous session and at 2914.00 two days ago.
While the share is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive. Smurfit Kappa managed to break above the 50-day moving average at 3040.56 today for the first time since May 25th.
With prices trading close to this year's high at 3254.00, upside momentum could accelerate should SKG.L be able to break out to new highs for the year. Trading close to April's high at 3218.00 we might see further upside momentum if potential buy stops at the level get triggered.