SMIN.L closes above its opening price after recovering from early selling pressure
Smiths Group plc (SMIN.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, SMIN.L finished the week 5.65% higher at 1448.50 after edging higher £8.50 (0.59%) today, outperforming the FTSE 100 (-0.36%). Today's close at 1448.50 marks the highest recorded closing price since October 9, 2018. Trading up to £10.00 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SMIN.L as at Jan 11, 2019):
Friday's trading range has been £26.00 (1.8%), that's slightly below the last trading month's daily average range of £32.88. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SMIN.L.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on December 7, 2018, SMIN.L lost -2.05% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 1389.40.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Smiths Group. Out of 54 times, SMIN.L closed higher 64.81% 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 59.26% with an average market move of 0.45%.