VOC.AX dominated by bulls lifting the market higher throughout the day
Vocus Group Limited (VOC.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
VOC.AX finished the week -2.51% lower at 3.11 after gaining $0.08 (2.64%) today, strongly outperforming the market (ASX 200, 0.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 3.08, the market confirms its breakout through the prior session's high having traded $0.04 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (VOC.AX as at Oct 12, 2018):
Friday's trading range was $0.14 (4.67%), that's far above last trading month's daily average range of $0.09. Things look different on a weekly scale, where volatility is slightly below the markets average with the monthly volatility being slightly below average.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Despite a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this happened on October 10th, VOC.AX lost -3.50% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading as low as 2.98 during the day, the share bounced off the key support level at 2.99. The failure to close below the support might increase that levels importance as support going forward. Prices are trading close to the key resistance level at 3.18.
Although Vocus Group 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 nine market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Bullish Engulfing Candle" stands out. Though it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for Vocus Group. Out of 112 times during the last ten years, VOC.AX closed lower 53.57% of the time on the next trading day.