SHL.AX closes higher for the 3rd day in a row
Sonic Healthcare Ltd (SHL.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SHL.AX finished the week 1.78% higher at 24.52 after gaining $0.11 (0.45%) today, outperforming the ASX 50 (-0.09%). Trading up to $0.09 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 24.47, the market confirmed its breakout through the previous session high after trading up to $0.13 above it intraday.
Daily Candlestick Chart (SHL.AX as at Mar 15, 2019):
Friday's trading range has been $0.25 (1.02%), that's below the last trading month's daily average range of $0.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SHL.AX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on February 22nd, SHL.AX actually lost -0.98% on the following trading day.
Prices are trading close to the key technical resistance level at 24.65 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 24.65 where further buy stops might get triggered. With prices trading close to this year's high at 24.80, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Sonic Healthcare. Out of 390 times, SHL.AX closed lower 54.10% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after four trading days, showing a win rate of 52.82% with an average market move of -0.05%.