ILU.AX pushes through previous session high
Iluka Resources (ILU.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
ILU.AX finished the week -10.1% lower at 8.90 after gaining $0.20 (2.3%) today. Closing above Thursday's high at 8.88, the share confirms its breakout through the prior session's high having traded $0.10 above it intraday.
Daily Candlestick Chart (ILU.AX as at Oct 12, 2018):
Friday's trading range was $0.26 (2.98%), that's slightly below last trading month's daily average range of $0.30. Things look different on a weekly scale, where volatility is way above the markets average with the monthly volatility being above average.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key resistance level at 9.05. After having been unable to move lower than 8.69 in the previous session, the market found buyers again around the same price level today at 8.72. The last time this happened on October 4th, ILU.AX lost -1.59% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 9.71.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 8.69 where further sell stops might get triggered.
Among the six market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "White Candle" stands out. It's common interpretation of being bullish has so far been confirmed for Iluka Resources in the past. Out of 545 times during the last ten years, ILU.AX closed higher 52.66% 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 53.39% with an average market move of 0.67%.