SCG.AX rises to highest close since September 18th
Scentre Group Ltd (SCG.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SCG.AX ended the week 6.67% higher at 4.16 after gaining $0.06 (1.46%) today, outperforming the ASX 50 (0.61%). Today's close at 4.16 marks the highest recorded closing price since September 18th. Trading up to $0.02 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, SCG.AX actually lost -1.99% on the following trading day. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SCG.AX as at Dec 07, 2018):
Friday's trading range has been $0.05 (1.21%), that's below the last trading month's daily average range of $0.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SCG.AX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Prices are trading close to the key technical resistance level at 4.19 (R1).
Crossing above the upper Bollinger Band for the first time since June 22nd, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 3.99 or signal the beginning of a strong momentum breakout leading to even higher prices.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Up" stand out. Its common bullish interpretation has been confirmed for Scentre Group. Out of 18 times, SCG.AX closed higher 50.00% 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 three trading days, showing a win rate of 61.11% with an average market move of 0.20%.