COH.AX pops to highest close since November 12th
Cochlear Limited (COH.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
COH.AX finished the week 3.02% higher at 174.40 after gaining $5.05 (2.98%) today, significantly outperforming the ASX 200 (0.42%). Today's close at 174.40 marks the highest recorded closing price since November 12th. Trading up to $0.99 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (COH.AX as at Dec 07, 2018):
Friday's trading range has been $2.56 (1.48%), that's below the last trading month's daily average range of $4.10. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for COH.AX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, COH.AX actually lost -0.80% on the following trading day.
Prices are trading close to the key technical support level at 171.45 (S1).
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 176.40 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Cochlear Limited. Out of 766 times, COH.AX closed higher 50.65% 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 59.01% with an average market move of 0.82%.