SEK.AX pushes through key technical resistance level
Seek Limited (SEK.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
SEK.AX finished the week 3.0% higher at 18.54 after gaining $0.42 (2.32%) today, strongly outperforming the ASX 50 (-0.09%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SEK.AX as at Mar 15, 2019):
Friday's trading range has been $0.40 (2.19%), that's slightly below the last trading month's daily average range of $0.48. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SEK.AX.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on February 27th, SEK.AX actually lost -1.86% on the following trading day.
Buyers managed to take out the key technical resistance level at 18.42 (now S1), which is likely to act as support going forward.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 18.54 where further buy stops might get activated. With prices trading close to this year's high at 18.97, upside momentum could speed up should the market be able to break out to new highs for the year. As prices are trading close to March's high at 18.69, upside momentum might accelerate should Seek Limited mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Seek Limited. Out of 754 times, SEK.AX closed higher 50.13% 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 55.04% with an average market move of 0.90%.