QAN.AX finds buyers again around 5.68
Qantas Airways Ltd (QAN.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, QAN.AX finished the week 2.82% higher at 5.83 after gaining $0.12 (2.1%) today on low volume, notably outperforming the ASX 50 (-0.04%). Today's close at 5.83 marks the highest recorded closing price since September 28th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 5.75, the market confirmed its breakout through the prior session high after trading up to $0.09 above it intraday.
Daily Candlestick Chart (QAN.AX as at Nov 09, 2018):
Friday's trading range has been $0.16 (2.8%), that's slightly above the last trading month's daily average range of $0.15. 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 lower than usual for QAN.AX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
The stock managed to close above the 50-day moving average at 5.78 for the first time since August 22nd. When this moving average was crossed above the last time on July 5th, QAN.AX gained 2.51% on the following trading day. After having been unable to move lower than 5.67 in the previous session, the share found buyers again around the same price level today at 5.68.
Crossing above the upper Bollinger Band for the first time since June 21st, 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 5.53 or signal the beginning of a strong momentum breakout leading to even higher prices.
While Qantas Airways is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further buying might move prices higher should the market test October's nearby high at 5.86.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Qantas Airways. Out of 69 times, QAN.AX closed higher 50.72% 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 63.77% with an average market move of 2.02%.