DXS.AX unable to break through key resistance level
Dexus (DXS.AX) Technical Analysis Report for Oct 12, 2018
Moving lower for the 2nd day in a row, DXS.AX ended the week -2.82% lower at 9.98 after tanking $0.22 (-2.16%) today on high volume. This is the biggest single-day loss in over four months. Today's close at 9.98 marks the lowest recorded closing price since August 13th. Trading $0.07 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 19th, DXS.AX lost -1.84% on the following trading day. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (DXS.AX as at Oct 12, 2018):
Friday's trading range was $0.12 (1.2%), that's slightly below last trading month's daily average range of $0.13. Things look different on a weekly scale, where volatility is above the markets average with the monthly volatility being way above average.
Prices are trading close to a key support level at 9.87. Unable to break through the key technical resistance level at 10.08, the market closed below it after spiking as high as 10.10 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward.
Crossing below the lower Bollinger Band for the first time since October 2nd, prices have reached an unusually low price in the short-term. This could either indicate a potential turning point back up towards the mean of the Bollinger Bands at 10.48 or signal a strong momentum breakout leading to even lower prices.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already. Dexus broke below the 100-day moving average at 10.19 today for the first time since May 16th.
Trading close to August's low at 9.87 we might see further downside momentum if potential sell stops at the level get triggered.
Among the 14 market conditions that our engine recognized today, the statistics for the Technical Indicators based condition "RSI(14) below 30" stands out. It's common interpretation of being bullish has so far been confirmed for Dexus in the past. Out of 10 times during the last ten years, DXS.AX closed higher 60.00% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after two trading days, showing a win rate of 70.00% with an average market move of 1.16%.