RHC.AX closes lower for the 2nd day in a row
Ramsay Health Care Ltd (RHC.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, RHC.AX finished the week 0.64% higher at 56.68 after edging lower $0.04 (-0.07%) today, slightly underperforming the ASX 50 (-0.04%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (RHC.AX as at Nov 09, 2018):
Friday's trading range has been $0.74 (1.31%), that's below the last trading month's daily average range of $1.08. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RHC.AX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on Monday, RHC.AX gained 0.38% on the following trading day.
Prices are trading close to the key technical support level at 56.63 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 57.24 where further buy stops might get activated. Trading close to September's high at 57.28 we could see further upside momentum if potential buy stops at the level get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Ramsay Health. Out of 318 times, RHC.AX closed higher 55.97% 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 61.01% with an average market move of 1.12%.