BKW.AX closes within prior day's range
Brickworks Limited (BKW.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, BKW.AX ended the week 5.51% higher at 17.23 after gaining $0.17 (1.0%) today on low volume, outperforming the ASX 200 (0.42%). Today's close at 17.23 marks the highest recorded closing price since November 12th. Trading up to $0.19 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BKW.AX as at Dec 07, 2018):
Friday's trading range has been $0.50 (2.94%), that's slightly above the last trading month's daily average range of $0.44. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for BKW.AX.
Two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
After trading down to 16.80 earlier during the day, the share bounced off the key technical support level at 16.98 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 17.40 (R1). After having been unable to move lower than 16.80 in the prior session, the market found buyers again around the same price level today at 16.80. The last time this happened on Wednesday, BKW.AX gained 0.35% on the following trading day.
Brickworks Limited shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 17.69, upside momentum could speed up should BKW.AX be able to break out to new highs for the year. Trading close to October's high at 17.61 we might see further upside momentum if potential buy stops at the level get triggered.
Among the nine 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 Brickworks Limited. Out of 30 times, BKW.AX closed higher 60.00% 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 10 trading days, showing a win rate of 56.67% with an average market move of 0.90%.