BEN.AX closes below its opening price unable to hold early session gains
Bendigo and Adelaide (BEN.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
BEN.AX finished the week 2.26% higher at 10.84 after losing $0.08 (-0.73%) today on low volume, slightly underperforming the ASX 200 (-0.36%). Trading $0.05 higher after the open, the share 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 20, 2018, BEN.AX lost -1.75% 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 (BEN.AX as at Jan 11, 2019):
Friday's trading range has been $0.13 (1.19%), that's far below the last trading month's daily average range of $0.25. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BEN.AX. Prices continued to consolidate within a tight trading range between 10.67 and 10.97 where it has been caught now for the whole last trading week.
Notwithstanding a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 10.72 (S1). Prices broke below the key technical support level at 10.87 (now R1), which is likely to act as resistance going forward.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the close-by swing low at 10.73 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bendigo and. Out of 95 times, BEN.AX closed higher 48.42% 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 61.05% with an average market move of 0.77%.