GEM.AX unable to break through key resistance level
G8 Education Limited (GEM.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GEM.AX finished the week 2.5% higher at 2.87 after losing $0.01 (-0.35%) today on low volume, underperforming the ASX 200 (0.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GEM.AX as at Dec 07, 2018):
Friday's trading range has been $0.08 (2.83%), that's below the last trading month's daily average range of $0.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GEM.AX.
Unable to break through the key technical resistance level at 2.88 (R1), G8 Education closed below it after spiking up to 2.89 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on November 29th, GEM.AX lost -1.06% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for G8 Education. Out of 206 times, GEM.AX closed higher 51.46% 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 54.85% with an average market move of 1.58%.