CAR.AX finds buyers at key support level
Carsales.com Limited (CAR.AX) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
CAR.AX ended the week unchanged at 15.18 after gaining A$0.11 (0.73%) today on low volume. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (CAR.AX as at Sep 14, 2018):
Friday's trading range was A$0.20 (1.31%), that's below last trading month's daily average range of A$0.44. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being below average.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After trading as low as 15.07 during the day, the share bounced off the key support level at 15.09. The failure to close below the support could increase that levels importance as support going forward.
Although the market is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Selling could speed up should prices move below the close-by swing low at 14.98 where further sell stops might get triggered. As prices are trading close to September's high at 15.86, upside momentum could accelerate should Carsales. com Limited mark new highs for the month.