CCP.AX stuck within tight trading range
Credit Corp Group (CCP.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
CCP.AX finished the week -1.19% lower at 19.12 after losing $0.11 (-0.57%) today on low volume, slightly underperforming the ASX 200 (-0.11%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (CCP.AX as at Nov 09, 2018):
Friday's trading range has been $0.35 (1.84%), that's below the last trading month's daily average range of $0.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CCP.AX. Prices continued to consolidate within a tight trading range between 18.65 and 19.36 where it has been caught now for the last three trading days.
After trading down to 18.98 earlier during the day, the market bounced off the key technical support level at 18.98 (S1). The failure to close below the support might increase that levels significance as support going forward. After spiking up to 19.33 during the day, Credit Corp found resistance at the 20-day moving average at 19.29. After having been unable to move lower than 19.04 in the prior session, the stock found buyers again around the same price level today at 18.98. The last time this happened on Monday, CCP.AX actually lost -1.92% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the nearby swing high at 19.36 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 18.65 where further sell stops might get activated. Further selling could move prices lower should the market test October's nearby low at 18.13.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Credit Corp. Out of 421 times, CCP.AX closed higher 52.73% 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 61.76% with an average market move of 1.82%.