TW.L finds buyers again around 157.80
Taylor Wimpey (TW.L) Technical Analysis Report for Oct 12, 2018
TW.L ended the week -2.45% lower at 161.15 after gaining £3.30 (2.09%) today on high volume, strongly outperforming the FTSE 100 (-0.16%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TW.L as at Oct 12, 2018):
Friday's trading range has been £6.70 (4.24%), that's far above the last trading month's daily average range of £3.32. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TW.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. The last time this happened on October 3rd, TW.L actually lost -1.84% on the following trading day.
After having been unable to move lower than 157.85 in the prior session, Taylor Wimpey found buyers again around the same price level today at 157.80.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 168.06.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Taylor Wimpey. Out of 34 times, TW.L closed higher 61.76% 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 73.53% with an average market move of 13.32%.