AST.AX closes within previous day's range
Ausnet Services Limited (AST.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
AST.AX ended the week -0.56% lower at 1.77 after losing $0.01 (-0.56%) today on high volume, slightly underperforming the ASX 200 (-0.07%). Trading $0.04 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AST.AX as at Mar 15, 2019):
Friday's trading range has been $0.05 (2.81%), that's far above the last trading month's daily average range of $0.03. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AST.AX.
Despite a strong opening Ausnet Services closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Shooting Star which are both known as bearish patterns. The last time a Bearish Closing Marubozu showed up on January 31st, AST.AX actually gained 0.61% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 1.76 where further sell stops could get triggered. As prices are trading close to March's low at 1.74, downside momentum might accelerate should the market mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Closing Marubozu" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Ausnet Services. Out of 76 times, AST.AX closed higher 51.32% 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 59.21% with an average market move of 0.98%.