GWA.AX closes within prior day's range
GWA Group Limited (GWA.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
GWA.AX ended the week -6.71% lower at 2.78 after flat today on low volume, slightly underperforming the market (ASX 200, 0.2%). Trading up to $0.04 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 26th, GWA.AX gained 3.37% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GWA.AX as at Oct 12, 2018):
Friday's trading range was $0.10 (3.64%), that's slightly above last trading month's daily average range of $0.10. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being slightly above average.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
After having been unable to move above 2.82 in the previous session, GWA Group ran into sellers again around the same price level today, failing to move higher than 2.81.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 2.60, downside momentum could accelerate should the market break out to new lows for the year.
Among the three market conditions that our engine recognized today, the statistics for the Price Action based condition "Bullish Intraday Reversal" stands out. Although it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for GWA Group. Out of 252 times during the last ten years, GWA.AX closed lower 53.97% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 51.59% with an average market move of -0.05%.