ASX closes higher for the 3rd day in a row
S&P/ASX 200 Index (ASX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ASX ended Thursday at 5113.30 gaining $115.20 (2.3%). Closing above Wednesday's high at 5024.50, the ASX confirmed its breakout through the prior session high after trading up to $149.90 above it intraday.
Daily Candlestick Chart (ASX as at Mar 26, 2020):
Thursday's trading range has been $176.30 (3.53%), that's below the last trading month's daily average range of $302.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for ASX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on January 28th, ASX gained 0.11% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for ASX 200. Out of 132 times, ASX closed higher 56.06% 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 five trading days, showing a win rate of 53.79% with an average market move of 0.01%.