ASL.AX finds buyers again around 1.62
Ausdrill Limited (ASL.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
ASL.AX ended the week -9.19% lower at 1.68 after gaining $0.04 (2.44%) today, notably outperforming the market (ASX 200, 0.2%).
Daily Candlestick Chart (ASL.AX as at Oct 12, 2018):
Friday's trading range was $0.08 (4.88%), that's slightly above last trading month's daily average range of $0.08. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being slightly above average.
Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Tweezer Bottom and the White Candle which are both known as bullish patterns.
After trading as low as 1.62 during the day, Ausdrill Limited bounced off the key support level at 1.63. The failure to close below the support might increase that levels importance as support going forward. Unable to break through the key technical resistance level at 1.70, the stock closed below it after spiking as high as 1.70 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move lower than 1.62 in the prior session, the share found buyers again around the same price level today at 1.62. The last time this happened on October 5th, ASL.AX lost -2.70% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 1.56, downside momentum might speed up should ASL.AX break out to new lows for the year.
Among the eight market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Bullish Engulfing Candle" stands out. While it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for Ausdrill Limited. Out of 141 times during the last ten years, ASL.AX closed lower 53.19% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 49.65% with an average market move of -0.23%.