PPT.AX runs into sellers again around 38.75
Perpetual Limited (PPT.AX) Technical Analysis Report for Oct 12, 2018
PPT.AX finished the week -8.63% lower at 38.64 after gaining $0.48 (1.26%) today, strongly outperforming the market (ASX 200, 0.2%). Trading up to $0.38 lower after the open, Perpetual Limited managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (PPT.AX as at Oct 12, 2018):
Friday's trading range was $1.13 (2.97%), that's above last trading month's daily average range of $0.85. Weekly volatility is also higher, being way above the markets average with the monthly volatility being above average.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on September 18th, PPT.AX gained 2.15% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 38.70 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 38.75.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 41.41.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the eight market conditions that our engine recognized today, the statistics for the Price Action based condition "52 Week Low" stands out. It's common interpretation of being bearish has so far been confirmed for Perpetual Limited in the past. Out of 61 times during the last ten years, PPT.AX closed lower 62.30% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after three trading days, showing a win rate of 55.74% with an average market move of -0.27%.