DOW.AX tanks -1.58% on low volume
Downer Edi Limited (DOW.AX) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
DOW.AX ended the week unchanged at 7.49 after tanking A$0.12 (-1.58%) today on low volume. This is the biggest single day loss in over three weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (DOW.AX as at Aug 10, 2018):
Friday's trading range was A$0.20 (2.61%), that's far above last trading month's daily average range of A$0.13. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being slightly above average.
Despite a strong opening the market closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to a key support level at 7.46. Breaking below the key support level at 7.58 today, it is now likely to act as resistance going forward. The share found buyers again today around 7.48 for the third trading day in a row after having found demand at 7.46 in the prior session and at 7.47 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 7.46 where further sell stops might get triggered.