MQG.AX breaks back above 20-day moving average
Macquarie Group Ltd (MQG.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MQG.AX finished the week -0.59% lower at 127.74 after gaining $1.01 (0.8%) today on low volume, outperforming the ASX 50 (-0.09%). Trading up to $0.70 lower after the open, Macquarie Group managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (MQG.AX as at Mar 15, 2019):
Friday's trading range has been $1.45 (1.14%), that's slightly below the last trading month's daily average range of $1.60. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for MQG.AX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
The market managed to close back above the 20-day moving average at 127.58 for the first time since March 8th. When this moving average was crossed above the last time on January 7th, MQG.AX gained 1.90% on the following trading day. Prices are trading close to the key technical resistance level at 128.72 (R1).
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 130.88, upside momentum could accelerate should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for Macquarie Group. Out of 379 times, MQG.AX closed higher 51.98% 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 56.46% with an average market move of 0.95%.