STO.AX unable to break through key resistance level
Santos Ltd (STO.AX) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
STO.AX finished the week -0.77% lower at 6.42 after losing $0.07 (-1.08%) today, strongly underperforming the ASX 50 (-0.04%). Trading $0.06 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (STO.AX as at Nov 09, 2018):
Friday's trading range has been $0.14 (2.17%), that's slightly below the last trading month's daily average range of $0.15. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for STO.AX.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish High-Wave Candle showed up on January 10th, STO.AX lost -0.71% on the following trading day.
Prices are trading close to the key technical support level at 6.32 (S1). Unable to break through the key technical resistance level at 6.49 (R1), the stock closed below it after spiking up to 6.50 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the nearby swing high at 6.56 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 6.34 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Its common bearish interpretation has been confirmed for Santos Ltd. Out of 20 times, STO.AX closed lower 60.00% of the time on the next trading day after the market condition occurred.