IGO.AX finds support at 50-day moving average
Independence Group (IGO.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
IGO.AX ended the week 6.93% higher at 4.01 after flat today on low volume, slightly outperforming the ASX 200 (-0.36%). Trading up to $0.08 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on December 19, 2018, IGO.AX actually lost -7.09% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IGO.AX as at Jan 11, 2019):
Friday's trading range has been $0.09 (2.25%), that's far below the last trading month's daily average range of $0.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IGO.AX.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading as low as 3.92 during the day, the stock found support at the 50-day moving average at 3.95.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 4.11 where further buy stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Independence Group. Out of 57 times, IGO.AX closed lower 56.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 61.40% with an average market move of -3.21%.