BAP.AX pushes through prior session high
Bapcor Limited (BAP.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
BAP.AX ended the week -5.16% lower at 7.17 after gaining $0.10 (1.41%) today, strongly outperforming the market (ASX 200, 0.2%). Closing above Thursday's high at 7.13, the market confirms its breakout through the previous session's high having traded $0.08 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (BAP.AX as at Oct 12, 2018):
Friday's trading range was $0.28 (4.0%), that's far above last trading month's daily average range of $0.15. Weekly volatility is also higher, being way above the markets average with the monthly volatility being above average.
Notwithstanding a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this happened on September 10th, BAP.AX gained 2.20% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to a key support level at 7.06. Prices are trading close to the key resistance level at 7.23.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 7.43.
While the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Among the eight market conditions that our engine recognized today, the statistics for the Technical Indicators based condition "Close crossed above the lower Bollinger Band" stands out. It's common interpretation of being bullish has so far been confirmed for Bapcor Limited in the past. Out of 17 times during the last ten years, BAP.AX closed higher 76.47% 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 64.71% with an average market move of 0.80%.