MQG.AX closes within previous day's range
Macquarie Group Ltd (MQG.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
MQG.AX ended the week -0.96% lower at 113.32 after gaining $1.27 (1.13%) today, outperforming the ASX 50 (0.61%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MQG.AX as at Dec 07, 2018):
Friday's trading range has been $2.06 (1.8%), that's slightly above the last trading month's daily average range of $2.02. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MQG.AX.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, MQG.AX lost -2.53% on the following trading day.
After trading down to 112.72 earlier during the day, the stock bounced off the key technical support level at 113.09 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 115.29 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 111.32 where further sell stops might get activated. Trading close to October's low at 110.13 we could see further downside momentum if potential sell stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Macquarie Group. Out of 382 times, MQG.AX closed higher 63.35% 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 60.73% with an average market move of 1.41%.