SMDS.L finds buyers again around 406.30
Smith, D.S. (SMDS.L) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, SMDS.L ended the week -11.73% lower at 407.00 after losing £9.40 (-2.26%) today, notably underperforming the FTSE 100 (-0.16%). Today's close at 407.00 marks the lowest recorded closing price since December 23, 2016. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 408.20, the share confirmed its breakout through the previous session low after trading up to £1.90 below it intraday.
Daily Candlestick Chart (SMDS.L as at Oct 12, 2018):
Friday's trading range has been £15.10 (3.6%), that's above the last trading month's daily average range of £11.00. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SMDS.L.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After having been unable to move lower than 408.20 in the prior session, Smith D. S. found buyers again around the same price level today at 406.30. The last time this happened on Monday, SMDS.L actually lost -2.55% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 466.60.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Smith D. S.. Out of 41 times, SMDS.L closed lower 56.10% of the time on the next trading day after the market condition occurred.