CTX.AX runs into sellers again around 27.69
Caltex Australia Ltd (CTX.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
CTX.AX ended the week -1.34% lower at 27.16 after tanking $0.39 (-1.42%) today, strongly underperforming the ASX 50 (0.61%). Closing below Thursday's low at 27.28, the market confirmed its breakout through the prior session low after trading up to $0.26 below it intraday.
Daily Candlestick Chart (CTX.AX as at Dec 07, 2018):
Friday's trading range has been $0.67 (2.43%), that's far above the last trading month's daily average range of $0.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CTX.AX.
Even with a strong opening Caltex Australia closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 27.02 during the day, the share found support at the 20-day moving average at 27.11. Prices broke below the key technical support level at 27.29 (now R1), which is likely to act as resistance going forward. After having been unable to move above 27.74 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 27.69. The last time this happened on November 30th, CTX.AX actually gained 1.56% on the following trading day.
Although CTX.AX is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Caltex Australia. Out of 47 times, CTX.AX closed higher 59.57% of the time on the next trading day after the market condition occurred.