ANN.AX dominated by bulls lifting the market higher throughout the day
Ansell Limited (ANN.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
ANN.AX ended the week -7.1% lower at 23.67 after gaining $0.05 (0.21%) 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 (ANN.AX as at Oct 12, 2018):
Friday's trading range was $0.48 (2.06%), that's slightly above last trading month's daily average range of $0.48. Weekly volatility is also higher, being way above the markets average with the monthly volatility being way 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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move lower than 23.17 in the prior session, the stock found buyers again around the same price level today at 23.22. The last time this happened on October 10th, ANN.AX lost -3.08% on the following trading day.
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 might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 25.02.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 23.17 where further sell stops could get triggered. With prices trading close to this year's low at 22.73, downside momentum might speed up should the share break out to new lows for the year.
Among the seven market conditions that our engine recognized today, the statistics for the Technical Indicators based condition "Close below the lower Bollinger Band" stands out. It's common interpretation of being bullish has so far been confirmed for Ansell Limited in the past. Out of 117 times during the last ten years, ANN.AX closed higher 56.41% 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 59.83% with an average market move of 1.31%.