SGR.AX finds buyers at key support level
The Star Ent Group (SGR.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
SGR.AX finished the week -2.49% lower at 4.30 after gaining $0.04 (0.94%) today, strongly outperforming the ASX 200 (-0.07%). Trading up to $0.03 lower after the open, The Star 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 missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SGR.AX as at Mar 15, 2019):
Friday's trading range has been $0.08 (1.87%), that's slightly below the last trading month's daily average range of $0.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SGR.AX. Prices continued to consolidate within a tight trading range between 4.24 and 4.35 where it has been caught now for the last three trading days.
After trading down to 4.24 earlier during the day, the market bounced off the key technical support level at 4.26 (S1). The failure to close below the support might increase that levels importance as support going forward. Unable to break through the key technical resistance level at 4.32 (R1), the share closed below it after spiking up to 4.32 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 4.25 in the previous session, the stock found buyers again around the same price level today at 4.24. The last time this happened on Tuesday, SGR.AX actually lost -2.06% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 4.46.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for The Star. Out of 50 times, SGR.AX closed higher 56.00% 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 58.00% with an average market move of 1.78%.