STO.AX snaps to lowest close since September 11th
Santos Ltd (STO.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, STO.AX finished the week -7.64% lower at 6.89 after losing $0.08 (-1.15%) today. Today's close at 6.89 marks the lowest recorded closing price since September 11th. The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (STO.AX as at Oct 12, 2018):
Friday's trading range was $0.13 (1.91%), that's slightly below last trading month's daily average range of $0.15. Things look different on a weekly scale, where volatility is way above the markets average with the monthly volatility being slightly below average.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 6.76 during the day, Santos Ltd bounced off the key support level at 6.78. The failure to close below the support might increase that levels importance as support going forward. The last time this happened on October 9th, STO.AX gained 1.23% on the following trading day. Prices are trading close to the key resistance level at 6.98.
Although the market is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive.
Among the eight market conditions that our engine recognized today, the statistics for the Price Action based condition "Gap Down" stands out. While it is usually interpreted being bearish, it has actually shown to be bullish so far in the past for Santos Ltd. Out of 172 times during the last ten years, STO.AX closed higher 51.16% 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 57.56% with an average market move of 1.69%.