UU.L fails to close above 100-day moving average
United Utilities (UU.L) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
UU.L finished the week 2.19% higher at 738.20 after losing £6.40 (-0.86%) today on low volume. Trading £3.40 higher after the open, United Utilities was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (UU.L as at Aug 10, 2018):
Friday's trading range was £9.20 (1.24%), that's below last trading month's daily average range of £13.70. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average. Prices continued to consolidate within a tight trading range between 731.40 and 747.20 which it has been in now for the last three days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After having been unable to move above 747.20 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 746.40. After spiking up to 746.40 during the day, the stock found resistance at the 100-day moving average at 743.38.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish. UU.L broke below the 100-day moving average at 743.38 today for the first time since July 11th.
Buying could speed up should prices move above the close-by swing high at 747.20 where further buy stops might get activated.