JBH.AX finds buyers at key support level
JB Hi-Fi Limited (JBH.AX) Technical Analysis Report for Oct 12, 2018
JBH.AX ended the week 0.69% higher at 24.65 after gaining $0.09 (0.37%) today, slightly outperforming the market (ASX 200, 0.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (JBH.AX as at Oct 12, 2018):
Friday's trading range was $0.77 (3.2%), that's above last trading month's daily average range of $0.61. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being slightly above average.
Notwithstanding a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the White Candle which are both known as bullish patterns.
After trading as low as 23.92 during the day, the share bounced off the key support level at 23.98. The failure to close below the support could increase that levels importance as support going forward. The last time this happened on August 31st, JBH.AX lost -2.05% on the following trading day.
Though the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could speed up should prices move above the close-by swing high at 25.15 where further buy stops might get activated. As prices are trading close to October's high at 25.22, upside momentum could accelerate should JB Hi-Fi mark new highs for the month.
Among the nine market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Bullish Engulfing Candle" stands out. It's common interpretation of being bullish has so far been confirmed for JB Hi-Fi in the past. Out of 88 times during the last ten years, JBH.AX closed higher 55.68% 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 55.68% with an average market move of 1.56%.