CAR.AX breaks back above 20-day moving average
Carsales.com Limited (CAR.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, CAR.AX ended the week 0.87% higher at 12.82 after gaining $0.25 (1.99%) today on low volume, notably outperforming the ASX 200 (-0.07%). Trading up to $0.12 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price.
Daily Candlestick Chart (CAR.AX as at Mar 15, 2019):
Friday's trading range has been $0.35 (2.76%), that's slightly above the last trading month's daily average range of $0.32. 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 strongly lower than usual for CAR.AX.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on March 1st, CAR.AX lost -1.22% on the following trading day.
Carsales. com Limited managed to close back above the 20-day moving average at 12.68.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 13.05 where further buy stops might get triggered. With prices trading close to this year's high at 13.29, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Carsales. com Limited. Out of 102 times, CAR.AX closed higher 54.90% 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 58.82% with an average market move of 0.95%.