EVN.AX closes within prior day's range after lackluster session
Evolution Mining Limited (EVN.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
EVN.AX ended the week 0.65% higher at 3.09 after gaining $0.03 (0.98%) today on low volume, strongly outperforming the ASX 200 (-0.11%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EVN.AX as at Nov 09, 2018):
Friday's trading range has been $0.06 (1.96%), that's far below the last trading month's daily average range of $0.09. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for EVN.AX. Prices continued to consolidate within a tight trading range between 3.02 and 3.14 where it has been caught now for the last three trading days.
The stock managed to close back above the 20-day moving average at 3.07. When this moving average was crossed above the last time on Tuesday, EVN.AX gained 2.63% on the following trading day. Prices are trading close to the key technical resistance level at 3.16 (R1). After having been unable to move above 3.12 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 3.12.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 3.14 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Close to S1 Support" stand out. Its common bullish interpretation has been confirmed for Evolution Mining. Out of 589 times, EVN.AX closed higher 45.67% 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 54.33% with an average market move of 1.48%.