ORI.AX closes below its opening price unable to hold early session gains
Orica Ltd (ORI.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
ORI.AX ended the week 3.35% higher at 17.30 after losing $0.12 (-0.69%) today on low volume, slightly underperforming the ASX 50 (-0.34%). Trading $0.15 higher after the open, Orica Ltd was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ORI.AX as at Jan 11, 2019):
Friday's trading range has been $0.39 (2.24%), that's slightly below the last trading month's daily average range of $0.44. 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 ORI.AX.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. The last time this happened on December 14, 2018, ORI.AX actually gained 3.48% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 17.06 (S1). The market closed back below the 50-day moving average at 17.40.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Orica Ltd. Out of 402 times, ORI.AX closed higher 50.50% 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 53.48% with an average market move of 0.50%.