SKC.AX finds buyers at key support level
Skycity Ent Group Limited Foreign Exempt NZX (SKC.AX) Technical Analysis Report for Jul 13, 2018 | by Techniquant Editorial Team
SKC.AX ended the week -4.17% lower at 3.68 after surging A$0.07 (1.94%) today. This is the biggest single day gain in over three weeks. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 3.66, Skycity Ent confirms its breakout through the previous session's high having traded A$0.02 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SKC.AX as at Jul 13, 2018):
Friday's trading range was A$0.07 (1.93%), that's slightly above last trading month's daily average range of A$0.07. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly above average.
After trading as low as 3.61 during the day, the stock bounced off the key support level at 3.61. The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key resistance level at 3.69. The share found buyers again today around 3.61 for the third trading day in a row after having found demand at 3.60 in the prior session and at 3.61 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term. The market managed to break above the 200-day moving average at 3.63 today for the first time since May 29th.
Trading close to May's low at 3.58 we might see further downside momentum if potential sell stops at the level get triggered.