PLS.AX finds buyers again around 0.70
Pilbara Min Limited (PLS.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
PLS.AX ended the week unchanged at 0.70 after flat today on low volume, slightly outperforming the ASX 200 (-0.36%). Trading $0.01 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on December 14, 2018, PLS.AX actually gained 2.70% on the following trading day.
Daily Candlestick Chart (PLS.AX as at Jan 11, 2019):
Friday's trading range has been $0.02 (2.82%), that's below the last trading month's daily average range of $0.03. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PLS.AX.
The stock managed to close back above the 20-day moving average at 0.70. After having been unable to move lower than 0.70 in the prior session, the market found buyers again around the same price level today at 0.70.
Although Pilbara Min is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Pilbara Min. Out of 80 times, PLS.AX closed lower 37.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 53.75% with an average market move of -3.19%.