ASX50 finds buyers again around 6148.00
S&P/ASX 50 Index (ASX50) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ASX50 finished Tuesday at 6185.50 gaining $23.60 (0.38%). Closing above Monday's high at 6171.00, the ASX confirmed its breakout through the prior session high after trading up to $21.40 above it intraday.
Daily Candlestick Chart (ASX50 as at Apr 16, 2019):
Tuesday's trading range has been $44.40 (0.72%), that's slightly below the last trading month's daily average range of $46.00. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ASX50.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on February 3rd, ASX50 gained 2.23% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 6174.60 (now S1), which is likely to act as support going forward. After having been unable to move lower than 6150.40 in the previous session, the stock index found buyers again around the same price level today at 6148.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 6201.00, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for ASX 50. Out of 29 times, ASX50 closed lower 58.62% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 51.72% with an average market move of 0.01%.