BEN.AX closes lower for the 4th day in a row


Bendigo and Adelaide (BEN.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team

Highlights

BEN.AX falls to lowest close since October 25, 2018
BEN.AX dominated by bears dragging the market lower throughout the day
BEN.AX closes lower for the 4th day in a row
BEN.AX ends the day on a bearish note closing near the low of the day
BEN.AX finds buyers again around 9.98

Overview

Moving lower for the 4th day in a row, BEN.AX ended Wednesday at 9.98 losing $0.14 (-1.38%) on high volume, strongly underperforming the ASX 200 (-0.25%). Today's close at 9.98 marks the lowest recorded closing price since October 25, 2018. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.

Daily Candlestick Chart (BEN.AX as at Feb 13, 2019):

Daily technical analysis candlestick chart for Bendigo and Adelaide (BEN.AX) as at Feb 13, 2019

Wednesday's trading range has been $0.26 (2.55%), that's slightly above the last trading month's daily average range of $0.25. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for BEN.AX.

Four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Tweezer Bottom which are both known as bullish patterns and two bearish patterns, the Bearish Closing Marubozu and the Black Candle. The last time a Bearish Closing Marubozu showed up on Monday, BEN.AX lost -2.60% on the following trading day.

Prices are trading close to the key technical support level at 9.97 (S1). Prices are trading close to the key technical resistance level at 10.20 (R1). After having been unable to move lower than 9.98 in the prior session, the market found buyers again around the same price level today at 9.98.

With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 10.96.

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

2018's low at 9.75 is within reach and we could see further downside momentum should Bendigo and break out beyond.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Closing Marubozu" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Bendigo and. Out of 57 times, BEN.AX closed higher 64.91% 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 54.39% with an average market move of 0.85%.


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