SEK.AX finds buyers again around 17.08
Seek Limited (SEK.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
SEK.AX ended the week 4.88% higher at 17.18 after losing $0.15 (-0.87%) today, underperforming the ASX 50 (-0.34%). Trading $0.13 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 4th, SEK.AX actually gained 3.05% on the following trading day. 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 (SEK.AX as at Jan 11, 2019):
Friday's trading range has been $0.29 (1.68%), that's far below the last trading month's daily average range of $0.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for SEK.AX. Prices continued to consolidate within a tight trading range between 16.92 and 17.46 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
After trading as low as 17.08 during the day, Seek Limited found support at the 20-day moving average at 17.11. Prices are trading close to the key technical resistance level at 17.48 (R1). After having been unable to move lower than 17.10 in the previous session, the stock found buyers again around the same price level today at 17.08.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 17.46 where further buy stops could get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Seek Limited. Out of 382 times, SEK.AX closed higher 51.83% 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 57.07% with an average market move of 1.05%.