ASX finds buyers again around 6079.50

S&P/ASX 200 Index (ASX) Technical Analysis Report for May 18, 2018 | by Techniquant Editorial Team


ASX closes below its opening price unable to hold early session gains
ASX finds buyers at key support level
ASX closes lower for the 2nd day in a row
ASX finds buyers again around 6079.50
ASX falls to lowest close since May 7th


Moving lower for the 2nd day in a row, ASX finished the week -0.47% lower at 6087.40 after edging lower A$6.90 (-0.11%) today. Today's closing price of 6087.40 marks the lowest close since May 7th. Trading A$16.30 higher after the open, ASX Index was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily Candlestick Chart (ASX as at May 18, 2018):

Daily technical analysis candlestick chart for S&P/ASX 200 Index (ASX) as at May 18, 2018

Friday's trading range was A$31.10 (0.51%), that's below last trading month's daily average range of A$38.34. 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 previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.

After trading as low as 6079.50 during the day, the stock index bounced off the key support level at 6083.30. The failure to close below the support might increase that levels importance as support going forward. After having been unable to move lower than 6077.60 in the prior session, the market found buyers again around the same price level today at 6079.50.

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

Selling could speed up should prices move below the nearby swing low at 6077.60 where further sell stops might get triggered. With prices trading close to this year's high at 6150.00, upside momentum could accelerate should the index be able to break out to new highs for the year.

Market Conditions for ASX as at May 18, 2018

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