ASX pops to highest close since January 22nd

S&P/ASX 200 Index (ASX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team


ASX rises to highest close since January 22nd
ASX dominated by bulls lifting the market higher throughout the day
ASX closes higher for the 4th day in a row
ASX runs into sellers again around 7138.40
ASX closes within previous day's range after lackluster session


Moving higher for the 4th day in a row, ASX finished the week 1.53% higher at 7130.20 after gaining $27.00 (0.38%) today. Today's close at 7130.20 marks the highest recorded closing price since January 22nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.

Daily Candlestick Chart (ASX as at Feb 14, 2020):

Daily technical analysis candlestick chart for S&P/ASX 200 Index (ASX) as at Feb 14, 2020

Friday's trading range has been $37.30 (0.53%), that's below the last trading month's daily average range of $51.48. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for ASX.

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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Wednesday, ASX gained 0.21% on the following trading day.

Prices are trading close to the key technical resistance level at 7144.90 (R1). After having been unable to move above 7145.80 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 7138.40.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might speed up should prices move above the close-by swing high at 7145.80 where further buy stops could get triggered.

Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for ASX 200. Out of 89 times, ASX closed higher 57.30% 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 58.43% with an average market move of 0.09%.

Market Conditions for ASX as at Feb 14, 2020

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