SYR.AX closes lower for the 3rd day in a row
Syrah Resources (SYR.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SYR.AX ended the week -2.45% lower at 1.59 after losing $0.05 (-3.05%) today. The bears were in full control today, moving the market lower throughout the whole session.
Daily Candlestick Chart (SYR.AX as at Dec 07, 2018):
Friday's trading range has been $0.10 (6.02%), that's slightly below the last trading month's daily average range of $0.11. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SYR.AX.
Two candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Last Engulfing Bottom Pattern showed up on November 20th, SYR.AX actually lost -2.99% on the following trading day.
Prices are trading close to the key technical support level at 1.53 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 1.53 where further sell stops could get activated. With prices trading close to this year's low at 1.36, downside momentum might speed up should Syrah Resources break out to new lows for the year. Further selling could move prices lower should the market test November's nearby low at 1.53.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Syrah Resources. Out of 324 times, SYR.AX closed higher 46.60% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 51.54% with an average market move of 4.41%.