ASX unable to break through key resistance level
S&P/ASX 200 Index (ASX) Technical Analysis Report for May 17, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ASX finished the week 0.86% higher at 6365.30 after gaining $37.50 (0.59%) today.
Daily Candlestick Chart (ASX as at May 17, 2019):
Friday's trading range has been $70.50 (1.11%), that's far above the last trading month's daily average range of $51.13. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ASX.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 6390.50 (R1), the index closed below it after spiking up to 6398.30 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on May 10th, ASX lost -0.21% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for ASX 200. Out of 792 times, ASX closed higher 53.79% 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 55.43% with an average market move of 0.18%.