WTB.L unable to break through key resistance level
Whitbread (WTB.L) Technical Analysis Report for Jun 14, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WTB.L ended Thursday at 4171.00 gaining £21.00 (0.51%).
Daily Candlestick Chart (WTB.L as at Jun 14, 2018):
Thursday's trading range was £80.00 (1.94%), that's slightly above last trading month's daily average range of £78.45. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 4111.00 and 4224.00 which it has been in now for the last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Unable to break through the key technical resistance level at 4183.00, the market closed below it after spiking as high as 4193.00 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward. After having been unable to move lower than 4120.00 in the prior session, the stock found buyers again around the same price level today at 4113.00. After spiking up to 4193.00 during the day, Whitbread found resistance at the 20-day moving average at 4183.20.
While WTB.L is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive.
Buying might accelerate should prices move above the nearby swing high at 4224.00 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 4111.00 where further sell stops could get activated.