SFR.AX finds buyers at key support level

Overview

Moving higher for the 2nd day in a row, SFR.AX finished the week -1.73% lower at 6.80 after gaining A$0.03 (0.44%) today. Today's closing price of 6.80 marks the highest close since September 7th. Trading up to A$0.20 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily Candlestick Chart (SFR.AX as at Sep 14, 2018):

Friday's trading range was A$0.25 (3.68%), that's slightly below last trading month's daily average range of A$0.26. 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 6.43 and 6.85 which it has been in now for the last trading week.

After trading as low as 6.59 during the day, Sandfire Resources bounced off the key support level at 6.78. The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 6.85 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 6.84.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Buying might accelerate should prices move above the close-by swing high at 6.85 where further buy stops could get triggered.