SKC.AX snaps to lowest close since November 29, 2017
Skycity Ent Group Limited Foreign Exempt NZX (SKC.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SKC.AX ended the week -3.01% lower at 3.54 after losing $0.02 (-0.56%) today on high volume, underperforming the market (ASX 200, 0.2%). Today's close at 3.54 marks the lowest recorded closing price since November 29, 2017. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SKC.AX as at Oct 12, 2018):
Friday's trading range was $0.04 (1.13%), that's below last trading month's daily average range of $0.05. Things look different on a weekly scale, where volatility is slightly above the markets average with the monthly volatility being slightly above average.
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 although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 3.66.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 3.45, downside momentum might speed up should the stock break out to new lows for the year.
Among the two market conditions that our engine recognized today, the statistics for the Price Action based condition "3 Consecutive Lower Closes" stands out. While it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for Skycity Ent. Out of 110 times during the last ten years, SKC.AX closed higher 54.55% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.82% with an average market move of 0.38%.