PPT.AX breaks back above 100-day moving average
Perpetual Limited (PPT.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PPT.AX finished Wednesday at 35.62 gaining $0.53 (1.51%), notably outperforming the ASX 200 (-0.25%). Today's close at 35.62 marks the highest recorded closing price since December 4, 2018. 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 above Tuesday's high at 35.40, the market confirmed its breakout through the previous session high after trading up to $0.22 above it intraday.
Daily Candlestick Chart (PPT.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.62 (1.75%), that's below the last trading month's daily average range of $0.87. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PPT.AX.
The share managed to close back above the 100-day moving average at 35.05 for the first time since February 7th. When this moving average was crossed above the last time on February 7th, PPT.AX actually lost -1.13% on the following trading day. Prices are trading close to the key technical resistance level at 36.04 (R1).
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 34.81 where further sell stops could get activated. Trading close to December's high at 36.63 we might see further upside momentum if potential buy stops at the level get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Perpetual Limited. Out of 408 times, PPT.AX closed higher 58.09% 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 51.72% with an average market move of 0.60%.