EVN.AX closes below its opening price unable to hold early session gains

Evolution Mining Limited (EVN.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team


EVN.AX closes below its opening price unable to hold early session gains
EVN.AX unable to break through key resistance level
EVN.AX finds buyers again around 3.18
EVN.AX closes within previous day's range


EVN.AX finished the week 2.55% higher at 3.22 after losing $0.04 (-1.23%) today, strongly underperforming the ASX 200 (0.42%). Trading $0.05 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.

Daily Candlestick Chart (EVN.AX as at Dec 07, 2018):

Daily technical analysis candlestick chart for Evolution Mining Limited (EVN.AX) as at Dec 07, 2018

Friday's trading range has been $0.10 (3.1%), that's slightly above the last trading month's daily average range of $0.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EVN.AX.

Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on October 18th, EVN.AX actually gained 1.99% on the following trading day.

Prices are trading close to the key technical support level at 3.16 (S1). Unable to break through the key technical resistance level at 3.24 (R1), the share closed below it after spiking up to 3.28 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 3.17 in the previous session, the market found buyers again around the same price level today at 3.18.

Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 3.15.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Evolution Mining. Out of 80 times, EVN.AX closed higher 51.25% 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 55.00% with an average market move of 1.95%.

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