ASX50 unable to break through key resistance level
S&P/ASX 50 Index (ASX50) Technical Analysis Report for May 17, 2018 | by Techniquant Editorial Team
ASX50 ended Thursday at 5928.70 losing A$15.30 (-0.26%). Today's closing price of 5928.70 marks the lowest close since May 7th. Closing below Wednesday's low at 5930.40, ASX 50 Index confirms its breakout through the prior session's low having traded A$19.50 below it intraday. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ASX50 as at May 17, 2018):
Thursday's trading range was A$47.20 (0.79%), that's above last trading month's daily average range of A$40.98. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly above average.
Regardless of a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
Unable to break through the key technical resistance level at 5947.20, the stock index closed below it after spiking as high as 5958.10 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward.
The index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend being bullish.
Selling could speed up should prices move below the close-by swing low at 5894.50 where further sell stops might get triggered.