SMIN.L misses to close above 50-day moving average
Smiths Group plc (SMIN.L) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
SMIN.L finished the week -1.55% lower at 1368.00 after gaining £16.50 (1.22%) today, slightly outperforming the FTSE 100 (1.1%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SMIN.L as at Dec 07, 2018):
Friday's trading range has been £29.00 (2.12%), that's slightly below the last trading month's daily average range of £34.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SMIN.L.
Three candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Southern Doji showed up on October 4th, SMIN.L actually lost -1.23% on the following trading day.
After spiking up to 1391.50 during the day, Smiths Group found resistance at the 50-day moving average at 1383.79.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 1337.00 where further sell stops might get activated. Further selling could move prices lower should the market test November's close-by low at 1307.50.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Its common bullish interpretation has been confirmed for Smiths Group. Out of 36 times, SMIN.L closed higher 61.11% 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 69.44% with an average market move of 0.89%.