CAR.AX breaks below Thursday's low
Carsales.com Limited (CAR.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, CAR.AX finished the week -4.72% lower at 11.31 after losing $0.16 (-1.39%) today on high volume, strongly underperforming the ASX 200 (0.42%). Closing below Thursday's low at 11.44, the share confirmed its breakout through the prior session low after trading up to $0.38 below it intraday.
Daily Candlestick Chart (CAR.AX as at Dec 07, 2018):
Friday's trading range has been $0.40 (3.49%), that's above the last trading month's daily average range of $0.31. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CAR.AX.
Prices are trading close to the key technical support level at 11.05 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 11.05, downside momentum could speed up should the stock break out to new lows for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Carsales. com Limited. Out of 45 times, CAR.AX closed higher 57.78% 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 57.78% with an average market move of 0.87%.