STJ.L drops to lowest close since April 6th
St. James's Place plc (STJ.L) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, STJ.L ended the week -6.35% lower at 1055.00 after edging lower £2.00 (-0.19%) today, slightly underperforming the FTSE 100 (-0.16%). Today's close at 1055.00 marks the lowest recorded closing price since April 6th. Trading £11.00 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 13th, STJ.L actually gained 0.59% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (STJ.L as at Oct 12, 2018):
Friday's trading range has been £22.50 (2.11%), that's above the last trading month's daily average range of £17.07. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for STJ.L.
One bullish candlestick pattern matches today's price action, the Last Engulfing Bottom Pattern.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 1119.48.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 1049.50 where further sell stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for St. James's. Out of 121 times, STJ.L closed higher 60.33% 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 74.38% with an average market move of 3.66%.