JHX.AX closes lower for the 3rd day in a row
James Hardie (JHX.AX) Technical Analysis Report for May 18, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, JHX.AX ended the week -4.46% lower at 22.48 after tanking A$0.45 (-1.96%) today. Today's closing price of 22.48 marks the lowest close since April 6th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 22.87, the market confirms its breakout through the previous session's low having traded A$0.46 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (JHX.AX as at May 18, 2018):
Friday's trading range was A$0.63 (2.74%), that's far above last trading month's daily average range of A$0.34. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly below average.
Prices are trading close to a key support level at 22.29. Unable to break through the key technical resistance level at 23.02, the share closed below it after spiking as high as 23.04 during the day. The failure to close above the resistance might increase that levels importance as resistance going forward. After spiking up to 23.04 during the day, James Hardie found resistance at the 50-day moving average at 23.04.
While the stock is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive. JHX.AX broke below the 100-day moving average at 22.72 today for the first time since July 3, 2017.
Trading close to March's low at 21.88 we might see further downside momentum if potential sell stops at the level get activated.