ANZ.AX closes lower for the 2nd day in a row
ANZ Banking Group (ANZ.AX) Technical Analysis Report for Oct 12, 2018
Moving lower for the 2nd day in a row, ANZ.AX finished the week -6.53% lower at 25.91 after losing $0.10 (-0.38%) today on high volume. Today's close at 25.91 marks the lowest recorded closing price since September 13, 2016. Trading up to $0.18 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 10th, ANZ.AX lost -3.24% 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 (ANZ.AX as at Oct 12, 2018):
Friday's trading range was $0.39 (1.51%), that's slightly below last trading month's daily average range of $0.44. Things look different on a weekly scale, where volatility is way above the markets average with the monthly volatility being way above average.
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 while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 27.68.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our engine recognized today, the statistics for the Price Action based condition "52 Week Low" stands out. Though it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for ANZ Banking. Out of 43 times during the last ten years, ANZ.AX closed higher 55.81% 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 62.79% with an average market move of 1.99%.