SKG.L dominated by bulls lifting the market higher throughout the day
Smurfit Kappa (SKG.L) Technical Analysis Report for Apr 02, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SKG.L ended Tuesday at 2244.00 surging £74.00 (3.41%), significantly outperforming the FTSE 100 (1.01%). This is the biggest single-day gain in over a month. 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 Apr 02, 2019):
Tuesday's trading range has been £61.78 (2.81%), that's slightly below the last trading month's daily average range of £70.87. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SKG.L.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 100-day moving average at 2179.10 for the first time since March 21st. When this moving average was crossed above the last time on March 18th, SKG.L gained 3.25% on the following trading day. Prices are trading close to the key technical resistance level at 2294.00 (R1).
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Further buying might move prices higher should the market test March's nearby high at 2352.73.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Smurfit Kappa. Out of 146 times, SKG.L closed higher 56.16% 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 60.27% with an average market move of 1.48%.