SDA.AX pushes through key resistance level
Speedcast Int Limited (SDA.AX) Technical Analysis Report for Jun 14, 2018 | by Techniquant Editorial Team
SDA.AX finished Thursday at 5.70 gaining A$0.07 (1.24%) on low volume. Closing within the previous day's range, prices failed to decisively move past the prior day's trading range.
Daily Candlestick Chart (SDA.AX as at Jun 14, 2018):
Thursday's trading range was A$0.16 (2.85%), that's slightly above last trading month's daily average range of A$0.15. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 5.55 and 5.76 which it has been in now for the last trading week.
Despite a weak opening Speedcast Int managed to close above the previous day's open and close, forming a bullish Engulfing Candle.
Breaking through the key resistance level at 5.69 today, it is now likely to act as support going forward. The share found buyers again today around 5.60 for the third trading day in a row after having found demand at 5.60 in the prior session and at 5.61 two days ago. After spiking up to 5.76 during the day, the stock found resistance at the 50-day moving average at 5.73.
Though the market is currently in a short-term down trend, this might just be a correction, as the medium and long term trends are both positive.