CPU.AX pushes through key resistance level
Computershare Ltd (CPU.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
CPU.AX ended the week -3.81% lower at 19.92 after gaining $0.27 (1.37%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CPU.AX as at Oct 12, 2018):
Friday's trading range was $0.70 (3.63%), that's far above last trading month's daily average range of $0.34. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly below average.
Two candlestick patterns are matching today's price action, the Piercing Pattern and the White Candle which are both known as bullish patterns.
Breaking through the key resistance level at 19.77 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 20.15. After having been unable to move above 20.03 in the previous session, Computershare Ltd ran into sellers again around the same price level today, failing to move higher than 19.98. The last time this happened on October 8th, CPU.AX lost -1.75% on the following trading day. After trading as low as 19.28 during the day, the share found support at the 50-day moving average at 19.30.
Although the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Among the 10 market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Piercing Pattern" stands out. It's common interpretation of being bullish has so far been confirmed for Computershare Ltd in the past. Out of 3 times during the last ten years, CPU.AX closed higher 100.00% 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 66.67% with an average market move of 2.67%.