ALQ.AX ends the day on a bullish note closing near the high of the day
Als Limited (ALQ.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
ALQ.AX finished the week -6.31% lower at 8.32 after gaining $0.04 (0.48%) today, slightly outperforming the market (ASX 200, 0.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (ALQ.AX as at Oct 12, 2018):
Friday's trading range was $0.30 (3.72%), that's far above last trading month's daily average range of $0.17. Weekly volatility is also higher, being way above the markets average with the monthly volatility being above average.
Despite a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this happened on July 24th, ALQ.AX gained 0.94% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key resistance level at 8.36.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 8.77.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Bullish Engulfing Candle" stands out. It's common interpretation of being bullish has so far been confirmed for Als Limited in the past. Out of 74 times during the last ten years, ALQ.AX closed higher 54.05% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.86% with an average market move of 3.14%.