CTD.AX breaks back below 20-day moving average
Corp Travel Limited (CTD.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, CTD.AX finished the week -2.74% lower at 22.38 after losing $0.38 (-1.67%) today, notably underperforming the ASX 200 (0.42%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (CTD.AX as at Dec 07, 2018):
Friday's trading range has been $0.39 (1.72%), that's far below the last trading month's daily average range of $0.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for CTD.AX.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
The share closed back below the 20-day moving average at 22.75 for the first time since November 26th. After having been unable to move lower than 22.11 in the prior session, the market found buyers again around the same price level today at 22.22. The last time this happened on November 30th, CTD.AX gained 7.00% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 22.11 where further sell stops might get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Corp Travel. Out of 42 times, CTD.AX closed higher 47.62% 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 64.29% with an average market move of 1.66%.