GMG.AX rockets 1.35% on low volume
Goodman Group Limited (GMG.AX) Technical Analysis Report for May 18, 2018 | by Techniquant Editorial Team
GMG.AX finished the week -0.88% lower at 9.00 after surging A$0.12 (1.35%) today on low volume. This is the biggest single day gain in over three weeks. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range in a lackluster session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (GMG.AX as at May 18, 2018):
Friday's trading range was A$0.09 (1.01%), that's far below last trading month's daily average range of A$0.13. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average. Prices continued to consolidate within a tight trading range between 8.84 and 9.08 which it has been in now for the last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the share managed to close higher but below the previous day's open, forming a bullish Harami Candle.
Prices are trading close to the key resistance level at 9.06. After having been unable to move above 9.02 in the prior session, Goodman Group ran into sellers again around the same price level today, failing to move higher than 9.01.
While the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could accelerate should prices move above the close-by swing high at 9.06 where further buy stops might get triggered.