SSE.L finds buyers at key support level
SSE plc (SSE.L) Technical Analysis Report for Jun 14, 2018 | by Techniquant Editorial Team
SSE.L ended Thursday at 1360.00 gaining £14.00 (1.04%). Today's closing price of 1360.00 marks the highest close since June 4th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 1356.00, the stock confirms its breakout through the previous session's high having traded £7.00 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SSE.L as at Jun 14, 2018):
Thursday's trading range was £28.00 (2.09%), that's above last trading month's daily average range of £22.25. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 1335.00 and 1364.50 which it has been in now for the last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Even with a weak opening SSE managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
After trading as low as 1335.00 during the day, the market bounced off the key support level at 1340.50. The failure to close below the support could increase that levels importance as support going forward.
Although the share is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive. SSE.L managed to break above the 50-day moving average at 1359.36 today for the first time since June 7th.
As prices are trading close to June's high at 1388.50, upside momentum could accelerate should the stock mark new highs for the month.