SAR.AX finds support at 100-day moving average
Saracen Mineral (SAR.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
SAR.AX finished the week 8.56% higher at 2.79 after losing $0.02 (-0.71%) today, underperforming the ASX 200 (-0.07%). Trading up to $0.04 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Monday, SAR.AX actually lost -1.48% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SAR.AX as at Mar 15, 2019):
Friday's trading range has been $0.06 (2.16%), that's below the last trading month's daily average range of $0.11. 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 SAR.AX.
One bearish candlestick pattern matches today's price action, the Hanging Man.
After trading as low as 2.74 during the day, Saracen Mineral found support at the 100-day moving average at 2.78. Prices are trading close to the key technical resistance level at 2.86 (R1).
The share 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 2.88 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Its common bearish interpretation has been confirmed for Saracen Mineral. Out of 118 times, SAR.AX closed lower 55.08% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 48.31% with an average market move of -1.05%.