IGO.AX pushes through previous session high

Independence Group (IGO.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team


IGO.AX pushes through key resistance level
IGO.AX dominated by bulls lifting the market higher throughout the day
IGO.AX pushes through 50-day moving average
IGO.AX ends the day on a bullish note closing near the high of the day
IGO.AX finds buyers again around 4.21


IGO.AX ended the week -6.81% lower at 4.38 after gaining $0.15 (3.55%) today, notably outperforming the market (ASX 200, 0.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 4.36, Independence Group confirms its breakout through the previous session's high having traded $0.05 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily Candlestick Chart (IGO.AX as at Oct 12, 2018):

Daily technical analysis candlestick chart for Independence Group (IGO.AX) as at Oct 12, 2018

Friday's trading range was $0.20 (4.75%), that's far above last trading month's daily average range of $0.15. Weekly volatility is also higher, being above the markets average with the monthly volatility being slightly below average.

In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. In spite of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.

Breaking through the key resistance level at 4.25 today, it is now likely to act as support going forward. After having been unable to move lower than 4.22 in the previous session, the stock found buyers again around the same price level today at 4.21. The last time this happened on October 2nd, IGO.AX gained 3.27% on the following trading day.

The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend being bullish. IGO.AX managed to break above the 50-day moving average at 4.34 today for the first time since September 19th.

Among the 12 market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Bullish Belt-hold" stands out. It's common interpretation of being bullish has so far been confirmed for Independence Group in the past. Out of 36 times during the last ten years, IGO.AX closed higher 55.56% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.33% with an average market move of 0.91%.

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