BGA.AX closes within previous day's range after lackluster session
Bega Cheese Limited (BGA.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BGA.AX finished the week unchanged at 6.16 after gaining $0.05 (0.82%) today, outperforming the ASX 200 (-0.11%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (BGA.AX as at Nov 09, 2018):
Friday's trading range has been $0.13 (2.11%), that's below the last trading month's daily average range of $0.19. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BGA.AX.
Six candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern, two bearish patterns, the Bearish Doji Star and the Northern Doji and three neutral patterns, the Doji, the Long-Legged Doji and the Rickshaw-Man.
After trading down to 6.09 earlier during the day, the stock bounced off the key technical support level at 6.13 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on October 16th, BGA.AX gained 5.68% on the following trading day. After having been unable to move above 6.22 in the previous session, Bega Cheese ran into sellers again around the same price level today, missing to move higher than 6.22.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Doji Star" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Bega Cheese. Out of 2 times, BGA.AX closed higher 100.00% 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 three trading days, showing a win rate of 50.00% with an average market move of 0.05%.