LLC.AX slides to lowest close since July 15, 2016
Lend Lease Group (LLC.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, LLC.AX ended the week -3.0% lower at 12.28 after losing $0.16 (-1.29%) today, notably underperforming the ASX 50 (0.61%). Today's close at 12.28 marks the lowest recorded closing price since July 15, 2016. Trading $0.24 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LLC.AX as at Dec 07, 2018):
Friday's trading range has been $0.38 (3.06%), that's slightly below the last trading month's daily average range of $0.40. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for LLC.AX.
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.
After having been unable to move lower than 12.27 in the prior session, the market found buyers again around the same price level today at 12.26.
Crossing below the lower Bollinger Band for the first time since November 14th, prices have shown unusually strong downward momentum in the short-term. This might either indicate a potential selling climax after which prices could head back up towards the mean of the Bollinger Bands at 12.94 or signal the beginning of a strong momentum breakout leading to even lower prices. The last time prices broke out below the lower Bollinger Band on November 9th, LLC.AX lost -6.32% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Lend Lease. Out of 56 times, LLC.AX closed higher 60.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.71% with an average market move of 1.40%.