PTM.AX closes higher for the 2nd day in a row
Platinum Asset (PTM.AX) Technical Analysis Report for Feb 14, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PTM.AX finished Thursday at 4.94 surging $0.12 (2.49%) on high volume. Today's close at 4.94 marks the highest recorded closing price since December 18, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 4.86, the stock confirmed its breakout through the prior session high after trading up to $0.10 above it intraday.
Daily Candlestick Chart (PTM.AX as at Feb 14, 2019):
Thursday's trading range has been $0.14 (2.89%), that's slightly above the last trading month's daily average range of $0.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for PTM.AX.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on February 7th, PTM.AX actually lost -1.46% on the following trading day.
The market managed to close above the 50-day moving average at 4.82 for the first time since December 7, 2018. Prices are trading close to the key technical resistance level at 5.03 (R1).
Crossing above the upper Bollinger Band for the first time since February 7th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 4.67 or signal the beginning of a strong momentum breakout leading to even higher prices.
While the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Its common bearish interpretation has been confirmed for Platinum Asset. Out of 292 times, PTM.AX closed lower 51.71% 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 55.48% with an average market move of -0.44%.