FLT.AX closes within previous day's range
Flight Centre Travel (FLT.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
FLT.AX finished the week 5.28% higher at 43.85 after gaining $0.34 (0.78%) today, strongly outperforming the ASX 200 (-0.36%). Today's close at 43.85 marks the highest recorded closing price since December 14, 2018. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FLT.AX as at Jan 11, 2019):
Friday's trading range has been $0.93 (2.14%), that's slightly below the last trading month's daily average range of $0.99. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FLT.AX.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on July 30, 2018, FLT.AX actually gained 1.02% on the following trading day.
Although the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Its common bearish interpretation has been confirmed for Flight Centre. Out of 67 times, FLT.AX closed lower 53.73% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 61.19% with an average market move of -0.41%.