DHG.AX breaks below Tuesday's low
Domain Holdings Aus (DHG.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
DHG.AX finished Wednesday at 2.08 losing $0.06 (-2.8%), notably underperforming the ASX 200 (-0.25%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 2.12, the stock confirmed its breakout through the previous session low after trading up to $0.04 below it intraday.
Daily Candlestick Chart (DHG.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.08 (3.7%), that's slightly below the last trading month's daily average range of $0.09. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for DHG.AX.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on January 16th, DHG.AX gained 3.18% on the following trading day.
Prices are trading close to the key technical support level at 2.06 (S1). The share ran into sellers again today around 2.16 for the third trading day in a row after having found sellers at 2.17 in the prior session and at 2.16 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 2.17 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 2.06 where further sell stops might get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Its common bearish interpretation has been confirmed for Domain Holdings. Out of 86 times, DHG.AX closed lower 55.81% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 61.63% with an average market move of -2.40%.