ASX50 closes below its opening price unable to hold early session gains


S&P/ASX 50 Index (ASX50) Technical Analysis Report for May 18, 2018 [1 min read]
Highlights
ASX50 closes below its opening price unable to hold early session gains
ASX50 unable to break through key resistance level
ASX50 closes lower for the 2nd day in a row
ASX50 falls to lowest close since May 7th
ASX50 closes within previous day's range after lackluster session
TQ Sentiment
Report Sentiment: 25% Bearish
Technical Forecast:
Overview

Moving lower for the 2nd day in a row, ASX50 finished the week -0.38% lower at 5928.50 after edging lower A$0.20 (-0.0%) today. Today's closing price of 5928.50 marks the lowest close since May 7th. Trading A$21.40 higher after the open, the market 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 chart for ASX50
Volatility

Friday's trading range was A$30.50 (0.51%), that's far below last trading month's daily average range of A$40.57. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly above average.

Price Action

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.

Support/Resistance

Unable to break through the key technical resistance level at 5947.20, the index closed below it after spiking as high as 5950.10 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward.

Trend

While still in a long-term downtrend, the short and medium-term trends both turned bullish already.

Order Flow

Selling could speed up should prices move below the nearby swing low at 5910.90 where further sell stops might get triggered.

Conclusion

Both sentiments, the classical technical analysis and our quantitative statistics are in perfect alignment today showing a neutral sentiment for the next trading day.

Market Conditions for S&P/ASX 50 Index
Condition Forecast Direction Win Avg Worst Best Events
Bullish Engulfing Candle TQ Pro Members Only
Strong Up Move TQ Pro Members Only
Bullish Belt-hold TQ Pro Members Only
Decisive Up Move TQ Pro Members Only
White Candle TQ Pro Members Only
More market conditions identified for TQ Pro members...
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