NVT.AX runs into sellers around 5.64 for the third day in a row
Navitas Limited (NVT.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
NVT.AX finished Wednesday at 5.62 gaining $0.01 (0.18%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NVT.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.03 (0.53%), that's below the last trading month's daily average range of $0.04. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for NVT.AX. Prices continued to consolidate within a tight trading range between 5.58 and 5.64 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on January 24th, NVT.AX actually gained 0.18% on the following trading day.
Prices are trading close to the key technical support level at 5.60 (S1). The stock ran into sellers again today around 5.64 for the third trading day in a row after having found sellers at 5.64 in the prior session and at 5.64 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 5.65 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 5.58 where further sell stops could get triggered. With prices trading close to this year's high at 5.68, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Navitas Limited. Out of 803 times, NVT.AX closed higher 50.31% 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 53.67% with an average market move of 0.77%.