IPL.AX still stuck within tight trading range
Incitec Pivot (IPL.AX) Technical Analysis Report for May 18, 2018 | by Techniquant Editorial Team
IPL.AX ended the week 1.14% higher at 3.55 after losing A$0.01 (-0.28%) today. Closing within the prior day's range, prices failed to decisively move past the previous day's trading range. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (IPL.AX as at May 18, 2018):
Friday's trading range was A$0.07 (1.96%), that's slightly below last trading month's daily average range of A$0.08. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 3.48 and 3.58 which it has been in now for the last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Notwithstanding a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle.
After trading as low as 3.51 during the day, the market bounced off the key support level at 3.54. The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.