TSCO.L closes higher for the 5th day in a row
Tesco (TSCO.L) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, TSCO.L finished the week 10.44% higher at 218.00 after gaining £1.60 (0.74%) today, notably outperforming the FTSE 100 (-0.36%). Today's close at 218.00 marks the highest recorded closing price since November 9, 2018. Trading up to £2.20 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 (TSCO.L as at Jan 11, 2019):
Friday's trading range has been £5.00 (2.31%), that's slightly below the last trading month's daily average range of £5.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for TSCO.L.
Tesco managed to close above the 100-day moving average at 216.76 for the first time since August 29, 2018. Prices are trading close to the key technical resistance level at 219.30 (R1). After having been unable to move above 218.80 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 219.20. The last time this happened on January 4th, TSCO.L actually gained 2.58% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 197.93.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Tesco. Out of 45 times, TSCO.L closed higher 62.22% 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 66.67% with an average market move of 1.48%.