CLW.AX dominated by bears dragging the market lower throughout the day
CHTR H LWR Stapled Securities (CLW.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CLW.AX ended the week -3.29% lower at 4.12 after tanking $0.07 (-1.67%) today, notably underperforming the market (ASX 200, 0.2%). This is the biggest single-day loss in over two weeks. Today's close at 4.12 marks the lowest recorded closing price since July 24th. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (CLW.AX as at Oct 12, 2018):
Friday's trading range was $0.09 (2.15%), that's above last trading month's daily average range of $0.07. Weekly volatility is also higher, being above the markets average with the monthly volatility being above average.
Two candlestick patterns are matching today's price action, the Bearish Closing Marubozu and the Black Candle which are both known as bearish patterns.
Prices are trading close to a key support level at 4.10. Unable to break through the key technical resistance level at 4.20, the market closed below it after spiking as high as 4.21 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward. The last time this happened on October 4th, CLW.AX gained 1.19% on the following trading day.
Crossing below the lower Bollinger Band for the first time since September 28th, prices have reached an unusually low price in the short-term. This could either indicate a potential turning point back up towards the mean of the Bollinger Bands at 4.27 or signal a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. CHTR H broke below the 200-day moving average at 4.12 today for the first time since July 23rd.
Among the 15 market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Bounced off Technical Resistance R2" stands out. While it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for CHTR H. Out of 8 times during the last ten years, CLW.AX closed higher 75.00% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 50.00% with an average market move of 1.05%.