SFR.AX snaps to lowest close since January 16th
Sandfire Resources (SFR.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SFR.AX ended the week -5.31% lower at 6.60 after losing $0.16 (-2.37%) today on low volume, significantly underperforming the ASX 200 (-0.07%). Today's close at 6.60 marks the lowest recorded closing price since January 16th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 6.70, the market confirmed its breakout through the previous session low after trading up to $0.10 below it intraday.
Daily Candlestick Chart (SFR.AX as at Mar 15, 2019):
Friday's trading range has been $0.17 (2.51%), that's below the last trading month's daily average range of $0.26. 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 SFR.AX.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Wednesday, SFR.AX lost -0.29% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Sandfire Resources. Out of 517 times, SFR.AX closed higher 50.68% 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 51.84% with an average market move of 3.73%.