LYC.AX dominated by bulls lifting the market higher throughout the day
Lynas Corporation (LYC.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
LYC.AX ended the week unchanged at 1.78 after surging $0.16 (9.88%) today, significantly outperforming the market (ASX 200, 0.2%). This is the biggest single-day gain in over a week. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 1.64, the market confirms its breakout through the previous session's high having traded $0.14 above it intraday. The last time this happened on October 8th, LYC.AX lost -4.35% on the following trading day. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (LYC.AX as at Oct 12, 2018):
Friday's trading range was $0.17 (10.49%), that's above last trading month's daily average range of $0.11. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average.
One bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move lower than 1.60 in the prior session, Lynas Corporation found buyers again around the same price level today at 1.61.
Though the stock is experiencing a short-term up trend, this could 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 1.75 today for the first time since October 5th.
Buying might speed up should prices move above the nearby swing high at 1.87 where further buy stops could get triggered.
Among the nine market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Bullish Break through SMA 20" stands out. Although it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for Lynas Corporation. Out of 146 times during the last ten years, LYC.AX closed lower 49.32% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after four trading days, showing a win rate of 53.42% with an average market move of -0.08%.