ANZ.AX breaks above 50-day moving average for the first time since September 3rd
ANZ Banking Group (ANZ.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, ANZ.AX ended the week 6.27% higher at 27.13 after edging higher $0.08 (0.3%) today on high volume, slightly outperforming the ASX 50 (-0.04%). Today's close at 27.13 marks the highest recorded closing price since October 5th.
Daily Candlestick Chart (ANZ.AX as at Nov 09, 2018):
Friday's trading range has been $0.45 (1.64%), that's slightly below the last trading month's daily average range of $0.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ANZ.AX.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on November 2nd, ANZ.AX actually gained 1.14% on the following trading day.
The share managed to close above the 50-day moving average at 27.09 for the first time since September 3rd. Prices are trading close to the key technical resistance level at 27.34 (R1).
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 while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 25.79.
Although 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 five 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. Its common bullish interpretation has been confirmed for ANZ Banking. Out of 156 times, ANZ.AX closed higher 58.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.69% with an average market move of 0.49%.