CPU.AX unable to break through key resistance level
Computershare Ltd (CPU.AX) Technical Analysis Report for Jul 13, 2018
CPU.AX finished the week -0.22% lower at 18.19 after losing A$0.16 (-0.87%) today. Trading A$0.20 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range. Ending with a weak close near the low of the day sets a bearish note for the next session.
Friday's trading range was A$0.37 (2.02%), that's far above last trading month's daily average range of A$0.26. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Unable to break through the key technical resistance level at 18.29, the market closed below it after spiking as high as 18.49 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move lower than 18.13 in the prior session, the share found buyers again around the same price level today at 18.12. After spiking up to 18.49 during the day, Computershare Ltd found resistance at the 20-day moving average at 18.37.
Though CPU.AX is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
While classical technical analysis indicates a bearish sentiment for the next trading day, our quantitative statistics show a different picture being bullish.