SKG.L ends the day on a bullish note closing near the high of the day
Smurfit Kappa (SKG.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SKG.L finished Wednesday at 2424.00 surging £158.00 (6.97%) on high volume, significantly outperforming the FTSE 100 (0.81%). This is the biggest single-day gain in over 11 months. Today's close at 2424.00 marks the highest recorded closing price since November 8, 2018. The bulls were in full control today, moving the market higher throughout the whole session. 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 Feb 13, 2019):
Wednesday's trading range has been £148.00 (6.47%), that's far above the last trading month's daily average range of £92.50. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SKG.L.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
The stock managed to close above the 100-day moving average at 2334.97 for the first time since September 24, 2018.
Crossing above the upper Bollinger Band for the first time since January 30th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 2215.50 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 30th, SKG.L actually lost -5.17% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for Smurfit Kappa. Out of 50 times, SKG.L closed higher 62.00% 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 64.00% with an average market move of 1.74%.