IOF.AX dominated by bears dragging the market lower throughout the day
Investa Office Fund Stapled Securities (IOF.AX) Technical Analysis Report for Oct 12, 2018
IOF.AX finished the week -0.36% lower at 5.52 after flat today, slightly underperforming the market (ASX 200, 0.2%). The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (IOF.AX as at Oct 12, 2018):
Friday's trading range was $0.01 (0.18%), that's below last trading month's daily average range of $0.02. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being way below average.
Four candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Tweezer Bottom which are both known as bullish patterns and two bearish patterns, the Bearish Short Candle and the Black Candle.
Investa Office was bought again around 5.52 after having seen lows at 5.52, 5.52 and 5.52 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on September 22nd, IOF.AX lost 0.00% on the following trading day.
Although the share is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Selling could speed up should prices move below the close-by swing low at 5.52 where further sell stops might get triggered. With prices trading close to this year's high at 5.56, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the 10 market conditions that our engine recognized today, the statistics for the Price Action based condition "Decisive Down Move" stands out. While it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for Investa Office. Out of 259 times during the last ten years, IOF.AX closed higher 51.74% 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 57.53% with an average market move of 0.97%.