SBM.AX closes above its opening price after recovering from early selling pressure


ST Barbara Limited (SBM.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team

Highlights

SBM.AX rises to highest close since July 13, 2018
SBM.AX closes above its opening price after recovering from early selling pressure
SBM.AX finds buyers at key support level
SBM.AX finds buyers again around 5.02
SBM.AX closes within previous day's range after lackluster session

Overview

SBM.AX finished Wednesday at 5.08 gaining $0.05 (0.99%), significantly outperforming the ASX 200 (-0.25%). Today's close at 5.08 marks the highest recorded closing price since July 13, 2018. 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. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (SBM.AX as at Feb 13, 2019):

Daily technical analysis candlestick chart for ST Barbara Limited (SBM.AX) as at Feb 13, 2019

Wednesday's trading range has been $0.11 (2.17%), that's below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SBM.AX.

One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on February 5th, SBM.AX gained 1.00% on the following trading day.

After trading down to 5.02 earlier during the day, the share bounced off the key technical support level at 5.05 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move lower than 5.02 in the previous session, the stock found buyers again around the same price level today at 5.02.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying could accelerate should prices move above the close-by swing high at 5.20 where further buy stops might get triggered. 2018's high at 5.28 is within reach and we could see further upside momentum should ST Barbara manage to break out beyond.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for ST Barbara. Out of 273 times, SBM.AX closed higher 54.95% 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 58.61% with an average market move of 1.25%.


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