CGF.AX closes lower for the 8th day in a row
Challenger Limited (CGF.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 8th day in a row, CGF.AX finished the week -4.43% lower at 7.76 after edging lower $0.03 (-0.39%) today, slightly underperforming the ASX 200 (-0.07%). Today's close at 7.76 marks the lowest recorded closing price since February 20th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CGF.AX as at Mar 15, 2019):
Friday's trading range has been $0.15 (1.91%), that's far below the last trading month's daily average range of $0.25. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CGF.AX.
Three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on Tuesday, CGF.AX actually lost -1.39% on the following trading day.
Prices are trading close to the key technical support level at 7.65 (S1). After having been unable to move lower than 7.71 in the previous session, the market found buyers again around the same price level today at 7.72.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 7.71 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "8 Consecutive Lower Closes" stand out. Its common bearish interpretation has been confirmed for Challenger Limited. Out of 3 times, CGF.AX closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 66.67% with an average market move of -2.48%.