TLS.AX rises to highest close since November 7th
Telstra Corp Ltd (TLS.AX) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, TLS.AX ended the week 5.12% higher at 3.08 after gaining $0.04 (1.32%) today on low volume, outperforming the ASX 50 (0.61%). Today's close at 3.08 marks the highest recorded closing price since November 7th. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (TLS.AX as at Dec 07, 2018):
Friday's trading range has been $0.06 (1.97%), that's slightly below the last trading month's daily average range of $0.06. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TLS.AX.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 100-day moving average at 3.05 for the first time since November 19th. When this moving average was crossed above the last time on August 16th, TLS.AX gained 0.65% on the following trading day. Prices are trading close to the key technical resistance level at 3.13 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Further buying could move prices higher should the market test November's close-by high at 3.10.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Telstra Corp. Out of 46 times, TLS.AX closed higher 58.70% 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 63.04% with an average market move of 1.05%.