SIG.AX dominated by bulls lifting the market higher throughout the day
Sigma Health Limited (SIG.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
SIG.AX finished the week -1.82% lower at 0.54 after surging $0.03 (5.88%) today, strongly outperforming the ASX 200 (-0.11%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 0.53, the market confirmed its breakout through the prior session high after trading up to $0.01 above it intraday.
Daily Candlestick Chart (SIG.AX as at Nov 09, 2018):
Friday's trading range has been $0.03 (5.88%), that's above the last trading month's daily average range of $0.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SIG.AX.
Even with a weak opening the share managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, five candlestick patterns are matching today's price action, the Bullish Belt-hold, the Bullish Closing Marubozu, the Bullish Marubozu, the Tweezer Bottom and the White Candle which are known as bullish patterns. The last time a Bullish Closing Marubozu showed up on August 17th, SIG.AX gained 1.79% on the following trading day.
After having been unable to move lower than 0.51 in the prior session, Sigma Health found buyers again around the same price level today at 0.51.
Although the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Sigma Health. Out of 104 times, SIG.AX closed lower 44.23% 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 10 trading days, showing a win rate of 52.88% with an average market move of -1.49%.