MTS.AX closes lower for the 2nd day in a row
Metcash Limited (MTS.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, MTS.AX finished Wednesday at 2.54 losing $0.02 (-0.78%), underperforming the ASX 200 (-0.25%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MTS.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.06 (2.34%), that's below the last trading month's daily average range of $0.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MTS.AX.
The market ran into sellers again today around 2.58 for the third trading day in a row after having found sellers at 2.59 in the prior session and at 2.59 two days ago. The last time this happened on November 30, 2018, MTS.AX lost -5.05% on the following trading day.
While Metcash Limited is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the close-by swing low at 2.50 where further sell stops might get activated. With prices trading close to this year's high at 2.62, upside momentum could accelerate should the stock be able to break out to new highs for the year. As prices are trading close to February's low at 2.44, downside momentum might speed up should the share mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Metcash Limited. Out of 264 times, MTS.AX closed higher 48.48% 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 five trading days, showing a win rate of 51.14% with an average market move of 0.10%.