SWM.AX pops to highest close since December 18, 2018
Seven West Media Limited (SWM.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SWM.AX finished Wednesday at 0.56 gaining $0.01 (1.82%) on high volume, strongly outperforming the ASX 200 (-0.25%). Today's close at 0.56 marks the highest recorded closing price since December 18, 2018.
Daily Candlestick Chart (SWM.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.02 (3.64%), that's slightly below the last trading month's daily average range of $0.02. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SWM.AX.
One bullish candlestick pattern matches today's price action, the White Candle.
After spiking up to 0.57 during the day, Seven West found resistance at the 50-day moving average at 0.56. The last time this happened on August 1, 2018, SWM.AX actually gained 4.76% on the following trading day.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 0.57 where further buy stops might get triggered. With prices trading close to this year's low at 0.51, downside momentum could accelerate should the market break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for Seven West. Out of 500 times, SWM.AX closed lower 42.20% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.60% with an average market move of -0.53%.