PGH.AX unable to break through key resistance level
Pact Group Holdings Limited (PGH.AX) Technical Analysis Report for Oct 12, 2018
PGH.AX ended the week -4.78% lower at 3.39 after gaining $0.01 (0.3%) today, slightly outperforming the market (ASX 200, 0.2%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PGH.AX as at Oct 12, 2018):
Friday's trading range was $0.07 (2.06%), that's below last trading month's daily average range of $0.12. Things look different on a weekly scale, where volatility is slightly above the markets average with the monthly volatility being slightly above average.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
Unable to break through the key technical resistance level at 3.40, Pact Group closed below it after spiking as high as 3.44 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move lower than 3.38 in the prior session, the share found buyers again around the same price level today at 3.37. The last time this happened on October 3rd, PGH.AX lost -8.00% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 3.66.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our engine recognized today, the statistics for the Technical Indicators based condition "Close crossed above the lower Bollinger Band" stands out. Though it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for Pact Group. Out of 32 times during the last ten years, PGH.AX closed lower 59.38% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -0.46%.