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 | by Techniquant Editorial Team
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 Candlestick Chart (ASX50 as at May 18, 2018):
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.
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.
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.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the nearby swing low at 5910.90 where further sell stops might get triggered.