MND.AX unable to break through key resistance level
Monadelphous Group (MND.AX) Technical Analysis Report for Oct 12, 2018
MND.AX finished the week -6.76% lower at 15.45 after gaining $0.10 (0.65%) today, slightly outperforming the market (ASX 200, 0.2%). Trading up to $0.16 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 15.40, the share confirms its breakout through the previous session's high having traded $0.09 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 (MND.AX as at Oct 12, 2018):
Friday's trading range was $0.42 (2.76%), that's above last trading month's daily average range of $0.34. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly below average.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Notwithstanding a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 15.49, Monadelphous Group closed below it after spiking as high as 15.49 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. The last time this happened on October 10th, MND.AX lost -2.29% on the following trading day. After having been unable to move lower than 15.10 in the previous session, MND.AX found buyers again around the same price level today at 15.07. After trading as low as 15.07 during the day, the market found support at the 50-day moving average at 15.10.
Although the share is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Among the 11 market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Bullish Bounce off SMA 50" stands out. Though it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for Monadelphous Group. Out of 83 times during the last ten years, MND.AX closed lower 54.22% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 54.22% with an average market move of -0.06%.