GNC.AX closes within prior day's range
Graincorp Limited Class A (GNC.AX) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
GNC.AX ended the week -0.13% lower at 7.49 after losing A$0.07 (-0.93%) today. Today's closing price of 7.49 marks the lowest close since August 2nd. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range.
Daily Candlestick Chart (GNC.AX as at Aug 10, 2018):
Friday's trading range was A$0.17 (2.24%), that's above last trading month's daily average range of A$0.14. 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 7.43 and 7.62 which it has been in now for the last trading week.
Notwithstanding a strong opening Graincorp Limited closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to a key support level at 7.43. Prices are trading close to the key resistance level at 7.58. The stock found buyers again today around 7.45 for the third trading day in a row after having found demand at 7.45 in the previous session and at 7.43 two days ago. After trading as low as 7.45 during the day, the market found support at the 20-day moving average at 7.47.
While the share is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory.
Selling could speed up should prices move below the nearby swing low at 7.43 where further sell stops might get activated.