SVW.AX pushes through key resistance level
Seven Group Holdings (SVW.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
SVW.AX ended the week -10.73% lower at 20.05 after gaining $0.15 (0.75%) today, outperforming the market (ASX 200, 0.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SVW.AX as at Oct 12, 2018):
Friday's trading range was $0.72 (3.7%), that's above last trading month's daily average range of $0.57. Weekly volatility is also higher, being way above the markets average with the monthly volatility being slightly above average.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Thrusting Pattern.
Breaking through the key resistance level at 20.04 today, it is now likely to act as support going forward. The last time this happened on September 17th, SVW.AX lost -0.62% on the following trading day.
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 could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 21.81.
While 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.
Trading close to August's low at 19.27 we might see further downside momentum if potential sell stops at the level get activated.
Among the eight market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Close to S1 Support" stands out. It's common interpretation of being bullish has so far been confirmed for Seven Group in the past. Out of 787 times during the last ten years, SVW.AX closed higher 51.84% 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 53.62% with an average market move of 1.29%.