SVT.L breaks below 20-day moving average for the first time since September 3rd
Severn Trent (SVT.L) Technical Analysis Report for Oct 12, 2018
Moving lower for the 2nd day in a row, SVT.L ended the week 0.44% higher at 1820.00 after losing £30.00 (-1.62%) today, significantly underperforming the FTSE 100 (-0.16%). Today's close at 1820.00 marks the lowest recorded closing price since October 5th. Trading £22.00 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 1845.00, Severn Trent confirmed its breakout through the prior session low after trading up to £33.00 below it intraday.
Daily Candlestick Chart (SVT.L as at Oct 12, 2018):
Friday's trading range has been £65.50 (3.53%), that's far above the last trading month's daily average range of £41.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SVT.L.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on October 4th, SVT.L actually gained 1.83% on the following trading day.
Prices are trading close to the key technical support level at 1801.00 (S1). The market broke below the 20-day moving average at 1844.15 today for the first time since September 3rd.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for Severn Trent. Out of 1,369 times, SVT.L closed higher 51.35% 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 57.12% with an average market move of 0.39%.