CSR.AX dominated by bulls lifting the market higher throughout the day
CSR Limited (CSR.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
CSR.AX finished the week -2.39% lower at 3.68 after surging $0.09 (2.51%) today, significantly outperforming the market (ASX 200, 0.2%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 3.60, the market confirms its breakout through the previous session's high having traded $0.09 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (CSR.AX as at Oct 12, 2018):
Friday's trading range was $0.14 (3.93%), that's far above last trading month's daily average range of $0.09. Weekly volatility is also higher, being above the markets average with the monthly volatility being below average.
Notwithstanding a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this happened on September 25th, CSR.AX lost -2.56% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key resistance level at 3.75.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 3.79.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our engine recognized today, the statistics for the Technical Indicators based condition "Close crossed above the lower Bollinger Band" stands out. Though it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for CSR Limited. Out of 67 times during the last ten years, CSR.AX closed lower 47.76% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 62.69% with an average market move of -0.59%.