MIN.AX dominated by bulls lifting the market higher throughout the day
Mineral Resources (MIN.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
MIN.AX finished the week -3.77% lower at 15.56 after surging $0.56 (3.73%) today on high volume, notably outperforming the market (ASX 200, 0.2%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 15.20, Mineral Resources confirms its breakout through the previous session's high having traded $0.44 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (MIN.AX as at Oct 12, 2018):
Friday's trading range was $0.73 (4.9%), that's far above last trading month's daily average range of $0.42. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being below average.
Regardless of a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this happened on September 7th, MIN.AX lost -2.27% on the following trading day. Additionally, two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns.
Breaking through the key resistance level at 15.10 today, it is now likely to act as support going forward. Prices are trading close to the key resistance level at 15.76. After having been unable to move lower than 14.85 in the previous session, the market found buyers again around the same price level today at 14.91.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. The share managed to break above the 50-day moving average at 15.44 today for the first time since October 9th.
Among the 13 market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Bullish Belt-hold" stands out. Although it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for Mineral Resources. Out of 28 times during the last ten years, MIN.AX closed lower 57.14% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 57.14% with an average market move of -0.52%.