S32.AX pushes through key resistance level
South32 Ltd (S32.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
S32.AX ended the week -8.27% lower at 3.88 after gaining $0.07 (1.84%) today.
Daily Candlestick Chart (S32.AX as at Oct 12, 2018):
Friday's trading range was $0.07 (1.82%), that's slightly below last trading month's daily average range of $0.08. Things look different on a weekly scale, where volatility is above the markets average with the monthly volatility being below average.
One bullish candlestick pattern matches today's price action, the White Candle.
Breaking through the key resistance level at 3.85 today, it is now likely to act as support going forward. The last time this happened on October 3rd, S32.AX gained 7.32% on the following trading day. Prices are trading close to the key resistance level at 3.98.
While the stock is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.
Buying could speed up should prices move above the nearby swing high at 3.98 where further buy stops might get activated.
Among the five market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Close to S1 Support" stands out. It's common interpretation of being bullish has so far been confirmed for South32 Ltd in the past. Out of 374 times during the last ten years, S32.AX closed higher 50.00% 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 54.81% with an average market move of 1.84%.