RFG.AX finds buyers around 0.30 for the third day in a row
Retail Food Group (RFG.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
RFG.AX finished the week unchanged at 0.30 after flat today, slightly outperforming the ASX 200 (-0.36%).
Daily Candlestick Chart (RFG.AX as at Jan 11, 2019):
Friday's trading range has been $0.00 (0.0%), that's far below the last trading month's daily average range of $0.01. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for RFG.AX.
Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern and the Tweezer Bottom which are both known as bullish patterns.
Retail Food found buyers again today around 0.30 for the third trading day in a row after having found demand at 0.30 in the previous session and at 0.30 two days ago. The last time this happened on Monday, RFG.AX lost 0.00% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 0.31 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 0.29 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Retail Food. Out of 701 times, RFG.AX closed lower 49.79% 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 54.35% with an average market move of -0.63%.