ASX ends the day on a bearish note closing near the low of the day
S&P/ASX 200 Index (ASX) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
ASX finished the week 0.75% higher at 6281.60 after losing A$16.10 (-0.26%) today. 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 (ASX as at Aug 10, 2018):
Friday's trading range was A$29.80 (0.47%), that's below last trading month's daily average range of A$39.97. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average.
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 moving higher in the previous session, the index closed lower but above the prior day's open today, forming a bearish Harami Candle.
Prices are trading close to a key support level at 6277.30.
Although the market is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could speed up should prices move above the close-by swing high at 6313.60 where further buy stops might get triggered.