IAG.AX closes lower for the 2nd day in a row
Insurance Australia Group Ltd (IAG.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IAG.AX ended Wednesday at 7.52 losing $0.02 (-0.27%), but still slightly outperforming the ASX 50 (-0.44%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (IAG.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.12 (1.58%), that's slightly below the last trading month's daily average range of $0.12. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IAG.AX.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 7.42 (S1). After having been unable to move lower than 7.46 in the prior session, the share found buyers again around the same price level today at 7.47. The last time this happened on January 31st, IAG.AX gained 0.85% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 7.46 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Insurance Australia. Out of 287 times, IAG.AX closed higher 49.48% 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 53.66% with an average market move of 0.71%.