WTB.L dominated by bulls lifting the market higher throughout the day
Whitbread (WTB.L) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
WTB.L ended Wednesday at 4901.00 surging £138.00 (2.9%), strongly outperforming the FTSE 100 (0.81%). This is the biggest single-day gain in over three months. The last time we've seen such an unusually strong single-day gain on November 1, 2018, WTB.L gained 1.86% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 4877.00, the stock confirmed its breakout through the prior session high after trading up to £78.00 above it intraday.
Daily Candlestick Chart (WTB.L as at Feb 13, 2019):
Wednesday's trading range has been £186.00 (3.9%), that's far above the last trading month's daily average range of £92.25. 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 slightly lower than usual for WTB.L.
Two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
The market managed to close back above the 20-day moving average at 4879.10 for the first time since February 6th. Prices are trading close to the key technical resistance level at 4971.00 (R1).
Although the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 5002.00, upside momentum might speed up should Whitbread be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Whitbread. Out of 304 times, WTB.L closed higher 49.01% 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 59.21% with an average market move of 0.93%.