ASX.AX climbs to highest close ever
ASX Limited (ASX.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 9th day in a row, ASX.AX ended Wednesday at 68.38 edging higher $0.13 (0.19%), outperforming the ASX 50 (-0.44%). Today's close at 68.38 marks the highest recorded closing price ever. Trading $0.45 higher after the open, ASX Limited was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ASX.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.66 (0.96%), that's below the last trading month's daily average range of $0.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ASX.AX.
One bearish candlestick pattern matches today's price action, the Shooting Star.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 65.20. The last time this happened on Monday, ASX.AX actually gained 1.25% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "9 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ASX Limited. Out of 4 times, ASX.AX closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 100.00% with an average market move of -3.65%.