SSE.L closes above its opening price after recovering from early selling pressure
SSE plc (SSE.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SSE.L finished Wednesday at 1194.00 gaining £2.00 (0.17%), underperforming the FTSE 100 (0.81%). Trading up to £14.50 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SSE.L as at Feb 13, 2019):
Wednesday's trading range has been £20.00 (1.68%), that's slightly above the last trading month's daily average range of £19.12. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SSE.L.
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. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
After trading down to 1175.00 earlier during the day, the stock bounced off the key technical support level at 1175.13 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 1196.50 (R1). After having been unable to move lower than 1176.50 in the prior session, the share found buyers again around the same price level today at 1175.00. The last time this happened on January 28th, SSE.L gained 2.13% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 1196.50 where further buy stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for SSE. Out of 156 times, SSE.L closed lower 54.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.13% with an average market move of -0.31%.