SIG.AX closes below its opening price unable to hold early session gains
Sigma Health Limited (SIG.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
SIG.AX ended the week -16.13% lower at 0.52 after flat today, slightly outperforming the ASX 200 (-0.07%). Trading $0.01 higher after the open, Sigma Health was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 6th, SIG.AX lost 0.00% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SIG.AX as at Mar 15, 2019):
Friday's trading range has been $0.02 (3.77%), that's slightly below the last trading month's daily average range of $0.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SIG.AX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 0.60.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 0.50 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Sigma Health. Out of 180 times, SIG.AX closed higher 42.78% 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 53.89% with an average market move of 1.05%.