FBU.AX closes higher for the 2nd day in a row
Fletcher Building Foreign Exempt NZX (FBU.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FBU.AX finished the week -0.65% lower at 4.56 after gaining $0.05 (1.11%) today, notably outperforming the ASX 200 (-0.07%). Trading up to $0.04 lower after the open, Fletcher Building managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FBU.AX as at Mar 15, 2019):
Friday's trading range has been $0.09 (1.98%), that's below the last trading month's daily average range of $0.12. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FBU.AX.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on February 25th, FBU.AX lost -1.45% on the following trading day.
Prices are trading close to the key technical resistance level at 4.62 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Fletcher Building. Out of 89 times, FBU.AX closed higher 49.44% 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 55.06% with an average market move of 0.02%.