FBU.AX rallies, gaining $0.12 (2.43%) within a single day
Fletcher Building Foreign Exempt NZX (FBU.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, FBU.AX ended Wednesday at 5.06 surging $0.12 (2.43%), strongly outperforming the ASX 200 (-0.25%). This is the biggest single-day gain in over a month. Today's close at 5.06 marks the highest recorded closing price since November 19, 2018. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (FBU.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.17 (3.44%), that's far above the last trading month's daily average range of $0.08. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FBU.AX.
One bullish candlestick pattern matches today's price action, the White Candle.
Fletcher Building managed to close above the 100-day moving average at 5.05 for the first time since August 21, 2018. When this moving average was crossed above the last time on August 14, 2018, FBU.AX lost 0.00% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 4.79.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Fletcher Building. Out of 145 times, FBU.AX closed higher 53.10% 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 57.93% with an average market move of 0.86%.
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