SOLI.L closes above its opening price after recovering from early selling pressure
Solid State plc (SOLI.L) Technical Analysis Report for Oct 12, 2018
SOLI.L finished the week -5.0% lower at 285.00 after surging £15.00 (5.56%) today on high volume, strongly outperforming the FTSE 100 (-0.16%). This is the biggest single-day gain in over four months. Trading up to £7.00 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 280.00, the stock confirmed its breakout through the previous session high after trading up to £10.00 above it intraday.
Daily Candlestick Chart (SOLI.L as at Oct 12, 2018):
Friday's trading range has been £20.00 (7.22%), that's far above the last trading month's daily average range of £10.11. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SOLI.L.
After trading down to 270.00 earlier during the day, the share bounced off the key technical support level at 270.56 (S2). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on September 18th, SOLI.L gained 0.94% on the following trading day. Prices are trading close to the key technical resistance level at 290.90 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 309.75.
Solid State shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Solid State. Out of 67 times, SOLI.L closed higher 49.25% 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 50.75% with an average market move of 0.07%.