CMW.AX stuck within tight trading range
Cromwell Prop Ordinary/Units FP Stapled Securities (CMW.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
CMW.AX finished the week -0.91% lower at 1.09 after gaining $0.01 (0.93%) today on high volume, outperforming the ASX 200 (-0.07%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CMW.AX as at Mar 15, 2019):
Friday's trading range has been $0.02 (1.82%), that's slightly above the last trading month's daily average range of $0.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CMW.AX. Prices continued to consolidate within a tight trading range between 1.08 and 1.10 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Tweezer Bottom.
The market found buyers again today around 1.08 for the third trading day in a row after having found demand at 1.08 in the previous session and at 1.08 two days ago. The last time this happened on Tuesday, CMW.AX actually lost -1.82% on the following trading day.
Though Cromwell Prop is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 1.12, upside momentum could speed up should the share be able to break out to new highs for the year. Further selling might move prices lower should the market test February's close-by low at 1.06.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cromwell Prop. Out of 1,327 times, CMW.AX closed higher 26.90% 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 42.35% with an average market move of 0.35%.