AZJ.AX finds buyers at key support level

Overview

AZJ.AX ended the week 0.72% higher at 4.20 after flat today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Volatility

Friday's trading range was A$0.03 (0.71%), that's far below last trading month's daily average range of A$0.07. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average.

Price Action

Even with a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle.

Support/Resistance

After trading as low as 4.18 during the day, the stock bounced off the key support level at 4.19. The failure to close below the support could increase that levels importance as support going forward. After having been unable to move lower than 4.18 in the prior session, the share found buyers again around the same price level today at 4.18.

Trend

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Order Flow

Selling might accelerate should prices move below the close-by swing low at 4.15 where further sell stops could get activated. With prices trading close to this year's low at 4.11, downside momentum might speed up should Aurizon Holdings break out to new lows for the year.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being slightly bullish.