CWN.AX unable to break through key resistance level
Crown Resorts Limited (CWN.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
CWN.AX finished the week 2.03% higher at 12.07 after losing $0.04 (-0.33%) today on low volume, but still slightly outperforming the ASX 200 (-0.36%). Trading $0.09 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (CWN.AX as at Jan 11, 2019):
Friday's trading range has been $0.18 (1.49%), that's slightly below the last trading month's daily average range of $0.19. 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 slightly lower than usual for CWN.AX.
Regardless of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on December 31, 2018, CWN.AX lost -1.35% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 12.14 (R1), the share closed below it after spiking up to 12.20 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
Though Crown Resorts 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 four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Crown Resorts. Out of 379 times, CWN.AX closed higher 54.62% 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 61.21% with an average market move of 0.68%.