RMD.AX closes within prior day's range
Resmed Inc Cdi 10:1 Foreign Exempt NYSE (RMD.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
RMD.AX ended the week -7.07% lower at 14.45 after gaining $0.09 (0.63%) today on high volume, slightly outperforming the market (ASX 200, 0.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (RMD.AX as at Oct 12, 2018):
Friday's trading range was $0.28 (1.97%), that's far above last trading month's daily average range of $0.15. Weekly volatility is also higher, being way above the markets average with the monthly volatility being way above average.
Two candlestick patterns are matching today's price action, the Piercing Pattern and the White Candle which are both known as bullish patterns.
Prices are trading close to the key resistance level at 14.50.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 15.53.
While the market is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive.
Trading close to August's low at 14.07 we might see further downside momentum if potential sell stops at the level get activated.
Among the seven market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Piercing Pattern" stands out. It's common interpretation of being bullish has so far been confirmed for Resmed Inc in the past. Out of 2 times during the last ten years, RMD.AX closed higher 100.00% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 50.00% with an average market move of 0.64%.