GOZ.AX unable to break through key resistance level
Growthpoint Property Unit/ Stapled Securities (GOZ.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
GOZ.AX ended the week -0.81% lower at 3.67 after losing $0.02 (-0.54%) today on low volume, slightly underperforming the ASX 200 (-0.36%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GOZ.AX as at Jan 11, 2019):
Friday's trading range has been $0.03 (0.81%), that's far below the last trading month's daily average range of $0.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GOZ.AX. Prices continued to consolidate within a tight trading range between 3.63 and 3.72 where it has been caught now for the whole last trading week.
Four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Tweezer Bottom which are both known as bullish patterns and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bearish Short Candle showed up on June 27, 2018, GOZ.AX lost -2.44% on the following trading day.
Unable to break through the key technical resistance level at 3.69 (R1), the stock closed below it after spiking up to 3.69 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The market ran into sellers again today around 3.69 for the third trading day in a row after having found sellers at 3.69 in the previous session and at 3.69 two days ago.
Growthpoint Property shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling could accelerate should prices move below the nearby swing low at 3.63 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Short Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Growthpoint Property. Out of 80 times, GOZ.AX closed higher 50.00% 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 68.75% with an average market move of 1.16%.