TPM.AX finds buyers at key support level
TPG Telecom Limited (TPM.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
TPM.AX finished the week -6.45% lower at 7.69 after edging higher $0.01 (0.13%) today, slightly underperforming 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 failed 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 (TPM.AX as at Oct 12, 2018):
Friday's trading range was $0.27 (3.6%), that's slightly above last trading month's daily average range of $0.25. Weekly volatility is also higher, being slightly above the markets average with the monthly volatility being slightly below average.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the In-Neck Pattern.
After trading as low as 7.42 during the day, the market bounced off the key support level at 7.50. The failure to close below the support might increase that levels importance as support going forward. The last time this happened on October 2nd, TPM.AX gained 1.94% 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 while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 8.27.
Though TPG Telecom is currently in a short-term down trend, this could just be a correction, as the medium and long term trends are both positive.
Among the seven market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "In-Neck Pattern" stands out. It's common interpretation of being bearish has so far been confirmed for TPG Telecom in the past. Out of 3 times during the last ten years, TPM.AX closed lower 66.67% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after five trading days, showing a win rate of 66.67% with an average market move of -1.21%.