SCG.AX dominated by bears dragging the market lower throughout the day
Scentre Group Ltd (SCG.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SCG.AX ended Wednesday at 3.96 tanking $0.15 (-3.65%), notably underperforming the ASX 50 (-0.44%). This is the biggest single-day loss in over two years. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (SCG.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.09 (2.23%), that's far above the last trading month's daily average range of $0.06. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SCG.AX.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns. The last time a Bearish Belt-hold showed up on December 13, 2018, SCG.AX lost -1.25% on the following trading day.
After trading down to 3.94 earlier during the day, the market bounced off the key technical support level at 3.95 (S1). The failure to close below the support could increase that levels importance as support going forward. The stock closed back below the 200-day moving average at 4.11.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 3.92 where further sell stops could get activated. With prices trading close to this year's low at 3.83, downside momentum might accelerate should the share break out to new lows for the year.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Its common bearish interpretation has been confirmed for Scentre Group. Out of 30 times, SCG.AX closed lower 66.67% of the time on the next trading day after the market condition occurred.