ABC.AX closes higher for the 3rd day in a row
Adelaide Brighton (ABC.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ABC.AX ended Wednesday at 4.89 gaining $0.04 (0.82%), notably outperforming the ASX 200 (-0.25%). Today's close at 4.89 marks the highest recorded closing price since December 6, 2018. Trading up to $0.03 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 31st, ABC.AX gained 0.89% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ABC.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.08 (1.64%), that's below the last trading month's daily average range of $0.11. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ABC.AX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 4.62.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Adelaide Brighton. Out of 172 times, ABC.AX closed lower 50.00% 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 10 trading days, showing a win rate of 55.23% with an average market move of -0.79%.