TLS.AX closes below its opening price unable to hold early session gains

Telstra Corp Ltd (TLS.AX) Technical Analysis Report for May 18, 2018

Highlights

TLS.AX closes below its opening price unable to hold early session gains
TLS.AX ends the day on a bearish note closing near the low of the day
TLS.AX finds buyers again around 2.85
TLS.AX stuck within tight trading range
TLS.AX falls to lowest close since August 10, 2011

TQ Sentiment

Report Sentiment: 37% Bearish
Technical Forecast:

Overview

TLS.AX finished the week -10.94% lower at 2.85 after losing A$0.02 (-0.7%) today. Today's closing price of 2.85 marks the lowest close since August 10, 2011. Trading A$0.02 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending with a weak close near the low of the day sets a bearish note for the next session.

Daily chart for TLS.AX

Volatility

Friday's trading range was A$0.04 (1.39%), that's below last trading month's daily average range of A$0.06. Things look different on a weekly scale, where volatility is way above the markets average with the monthly volatility being way above average. Prices continued to consolidate within a tight trading range between 2.80 and 2.89 which it has been in now for the last three days.

Price Action

Even with a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle.

Support/Resistance

After having been unable to move lower than 2.84 in the previous session, Telstra Corp found buyers again around the same price level today at 2.85.

Trend

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Order Flow

Selling could speed up should prices move below the nearby swing low at 2.80 where further sell stops might get triggered.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bearish.

Market Conditions for Telstra Corp Ltd

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