ORG.AX closes below its opening price unable to hold early session gains
Origin Energy Ltd (ORG.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
ORG.AX ended the week -1.12% lower at 7.06 after losing $0.17 (-2.35%) today on low volume, notably underperforming the ASX 50 (-0.04%). Trading $0.08 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, ORG.AX actually gained 0.56% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ORG.AX as at Nov 09, 2018):
Friday's trading range has been $0.19 (2.67%), that's slightly above the last trading month's daily average range of $0.18. Things look different on the weekly timeframe, where the market's trading range of the last week has been way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ORG.AX.
Although Origin Energy 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 6.93 where further sell stops might get triggered. With prices trading close to this year's low at 6.89, downside momentum could accelerate should the share break out to new lows for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Origin Energy. Out of 284 times, ORG.AX closed higher 49.65% 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 four trading days, showing a win rate of 55.28% with an average market move of 0.19%.