BEN.AX dominated by bulls lifting the market higher throughout the day
Bendigo and Adelaide (BEN.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, BEN.AX ended the week 4.98% higher at 10.55 after gaining $0.06 (0.57%) today on low volume, outperforming the ASX 200 (-0.11%). Today's close at 10.55 marks the highest recorded closing price since October 5th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 10.53, Bendigo and confirmed its breakout through the previous session high after trading up to $0.02 above it intraday.
Daily Candlestick Chart (BEN.AX as at Nov 09, 2018):
Friday's trading range has been $0.13 (1.25%), that's far below the last trading month's daily average range of $0.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BEN.AX.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Short Candle showed up on October 17th, BEN.AX gained 1.38% on the following trading day.
Prices are trading close to the key technical resistance level at 10.57 (R1). After having been unable to move above 10.53 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 10.55.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop 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 down towards the center of the Bollinger Bands at 10.19.
Although the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Further buying could move prices higher should the market test October's close-by high at 10.78.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "5 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Bendigo and. Out of 37 times, BEN.AX closed higher 51.35% 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 four trading days, showing a win rate of 54.05% with an average market move of 0.43%.