ORG.AX breaks key support level
Origin Energy Ltd (ORG.AX) Technical Analysis Report for Aug 10, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ORG.AX ended the week -1.43% lower at 9.63 after tanking A$0.22 (-2.23%) today on low volume. This is the biggest single day loss in over four weeks. Today's closing price of 9.63 marks the lowest close since August 2nd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 9.64, the market confirms its breakout through the prior session's low having traded A$0.02 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (ORG.AX as at Aug 10, 2018):
Friday's trading range was A$0.30 (3.03%), that's far above last trading month's daily average range of A$0.19. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being below average.
Notwithstanding a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to a key support level at 9.58. Breaking below the key support level at 9.76 today, it is now likely to act as resistance going forward. After having been unable to move lower than 9.64 in the prior session, the share found buyers again around the same price level today at 9.62.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. Origin Energy broke below the 50-day moving average at 9.74 today for the first time since August 1st.
Selling could speed up should prices move below the nearby swing low at 9.55 where further sell stops might get activated.