ASX.AX slides to lowest close since April 30th
ASX Limited (ASX.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ASX.AX finished the week -4.07% lower at 58.65 after losing $0.05 (-0.09%) today, slightly underperforming the market (ASX 200, 0.2%). Today's close at 58.65 marks the lowest recorded closing price since April 30th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ASX.AX as at Oct 12, 2018):
Friday's trading range was $0.59 (1.01%), that's slightly below last trading month's daily average range of $0.73. Things look different on a weekly scale, where volatility is above the markets average with the monthly volatility being above average.
One bullish candlestick pattern matches today's price action, the White Candle.
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 might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 62.20.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "White Candle" stands out. It's common interpretation of being bullish has so far been confirmed for ASX Limited in the past. Out of 457 times during the last ten years, ASX.AX closed higher 53.17% 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 55.58% with an average market move of 0.54%.