ORE.AX dominated by bulls lifting the market higher throughout the day
Orocobre Limited (ORE.AX) Technical Analysis Report for Oct 12, 2018
ORE.AX finished the week -16.55% lower at 3.73 after gaining $0.10 (2.75%) today, strongly outperforming the market (ASX 200, 0.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (ORE.AX as at Oct 12, 2018):
Friday's trading range was $0.23 (6.52%), that's slightly above last trading month's daily average range of $0.19. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly above average.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on September 20th, ORE.AX gained 7.03% on the following trading day. Notwithstanding a weak opening the share managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key resistance level at 3.79. After having been unable to move above 3.74 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 3.75.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 3.35, downside momentum might speed up should the stock break out to new lows for the year.
Among the eight market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Bullish Outside Bar" stands out. It's common interpretation of being bullish has so far been confirmed for Orocobre Limited in the past. Out of 43 times during the last ten years, ORE.AX closed higher 51.16% 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 58.14% with an average market move of 1.90%.