CQR.AX slips to lowest close since August 2nd
Charter Hall Retail Units FP (CQR.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CQR.AX finished the week -3.07% lower at 4.10 after losing $0.05 (-1.2%) today, strongly underperforming the market (ASX 200, 0.2%). Today's close at 4.10 marks the lowest recorded closing price since August 2nd. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (CQR.AX as at Oct 12, 2018):
Friday's trading range was $0.05 (1.21%), that's slightly below last trading month's daily average range of $0.06. Things look different on a weekly scale, where volatility is above the markets average with the monthly volatility being way above average.
One bearish candlestick pattern matches today's price action, the Black Candle.
Breaking below the key support level at 4.11 today, it is now likely to act as resistance going forward. The last time this happened on yesterday, CQR.AX lost -1.20% on the following trading day.
Crossing below the lower Bollinger Band for the first time since July 23rd, 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 4.26 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.
Trading close to August's low at 4.08 we might see further downside momentum if potential sell stops at the level get triggered.
Among the nine market conditions that our engine recognized today, the statistics for the Price Action based condition "Close near low of period" stands out. While it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for Charter Hall. Out of 449 times during the last ten years, CQR.AX closed higher 53.01% 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 58.13% with an average market move of 0.53%.