S32.AX closes below its opening price unable to hold early session gains
South32 Ltd (S32.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, S32.AX ended the week -0.32% lower at 3.09 after losing $0.03 (-0.96%) today, strongly underperforming the ASX 50 (0.61%). Trading $0.04 higher after the open, South32 Ltd was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on November 30th, S32.AX actually gained 7.10% on the following trading day. Closing below Thursday's low at 3.10, the stock confirmed its breakout through the prior session low after trading up to $0.03 below it intraday.
Daily Candlestick Chart (S32.AX as at Dec 07, 2018):
Friday's trading range has been $0.09 (2.88%), that's above the last trading month's daily average range of $0.08. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for S32.AX.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for South32 Ltd. Out of 123 times, S32.AX closed higher 54.47% 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 47.97% with an average market move of 1.02%.