GMG.AX dominated by bulls lifting the market higher throughout the day
Goodman Group Limited (GMG.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GMG.AX finished the week 2.85% higher at 10.45 after gaining $0.05 (0.48%) today on low volume, outperforming the ASX 50 (-0.04%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 10.41, the market confirmed its breakout through the previous session high after trading up to $0.05 above it intraday.
Daily Candlestick Chart (GMG.AX as at Nov 09, 2018):
Friday's trading range has been $0.12 (1.16%), that's below the last trading month's daily average range of $0.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GMG.AX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Unable to break through the key technical resistance level at 10.46 (R1), the stock closed below it after spiking up to 10.46 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on Wednesday, GMG.AX actually gained 2.16% on the following trading day.
Goodman Group shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 10.54 where further buy stops could get activated. Further buying might move prices higher should the market test October's nearby high at 10.56.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Goodman Group. Out of 90 times, GMG.AX closed higher 45.56% 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 63.33% with an average market move of 1.36%.