S32.AX closes within previous day's range after lackluster session
South32 Ltd (S32.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
S32.AX finished the week 3.66% higher at 3.40 after losing $0.03 (-0.87%) today, underperforming the ASX 50 (-0.34%). 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 (S32.AX as at Jan 11, 2019):
Friday's trading range has been $0.05 (1.48%), that's far below the last trading month's daily average range of $0.09. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for S32.AX.
After having been unable to move lower than 3.38 in the prior session, South32 Ltd found buyers again around the same price level today at 3.37. The last time this happened on Tuesday, S32.AX gained 0.29% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 3.49 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 3.32 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for South32 Ltd. Out of 211 times, S32.AX closed higher 49.76% 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 53.55% with an average market move of 1.38%.