AMP.AX finds buyers around 2.59 for the third day in a row
AMP Limited (AMP.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
AMP.AX ended the week -0.74% lower at 2.67 after gaining $0.06 (2.3%) today, significantly outperforming the ASX 50 (-0.04%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (AMP.AX as at Nov 09, 2018):
Friday's trading range has been $0.08 (3.08%), that's slightly below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for AMP.AX. Prices continued to consolidate within a tight trading range between 2.59 and 2.70 where it has been caught now for the last three trading days.
Despite a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 2.71 (R1). The market found buyers again today around 2.59 for the third trading day in a row after having found demand at 2.60 in the previous session and at 2.60 two days ago. The last time this happened on October 30th, AMP.AX gained 6.93% on the following trading day.
Though the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 2.77 where further buy stops might get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to R1 Resistance" stand out. Its common bearish interpretation has been confirmed for AMP Limited. Out of 1,020 times, AMP.AX closed lower 50.98% 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 54.41% with an average market move of -0.54%.