IPL.AX pushes through 20-day moving average

Overview

Moving higher for the 2nd day in a row, IPL.AX finished Tuesday at 3.62 gaining A$0.03 (0.84%) on low volume. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Volatility

Tuesday's trading range was A$0.07 (1.94%), that's slightly above last trading month's daily average range of A$0.07. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average.

Support/Resistance

Prices are trading close to a key support level at 3.57. Unable to break through the key technical resistance level at 3.65, the market closed below it after spiking as high as 3.65 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After spiking up to 3.65 during the day, the stock found resistance at the 200-day moving average at 3.62.

Trend

While Incitec Pivot is experiencing a short-term up trend, this might just be a correction, as both the medium and long term trends are still in negative territory. The share managed to break above the 20-day moving average at 3.62 today for the first time since February 20th.

Order Flow

Buying could accelerate should prices move above the close-by swing high at 3.66 where further buy stops might get triggered.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bullish.