ASX.AX still stuck within tight trading range
ASX Limited (ASX.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
ASX.AX finished the week 2.26% higher at 62.04 after losing $0.18 (-0.29%) today on low volume, but still slightly outperforming the ASX 50 (-0.34%). Trading $0.34 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on December 19, 2018, ASX.AX lost -0.29% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ASX.AX as at Jan 11, 2019):
Friday's trading range has been $0.60 (0.96%), that's far below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ASX.AX. Prices continued to consolidate within a tight trading range between 61.00 and 62.64 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 62.02 (S1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ASX Limited. Out of 377 times, ASX.AX closed higher 51.46% 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 51.99% with an average market move of 0.47%.