MPL.AX ends the day indecisive
Medibank Private Limited (MPL.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, MPL.AX ended the week -3.79% lower at 2.79 after losing $0.01 (-0.36%) today. Today's close at 2.79 marks the lowest recorded closing price since August 24, 2017. Trading up to $0.04 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 5th, MPL.AX lost -0.69% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MPL.AX as at Oct 12, 2018):
Friday's trading range was $0.06 (2.16%), that's far above last trading month's daily average range of $0.04. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly below average.
One bullish candlestick pattern matches today's price action, the Takuri Line.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 2.87.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our engine recognized today, the statistics for the Price Action based condition "52 Week Low" stands out. Though it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for Medibank Private. Out of 6 times during the last ten years, MPL.AX closed higher 50.00% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 83.33% with an average market move of 7.03%.