VVR.AX closes lower for the 2nd day in a row
Viva Energy REIT Stapled Securities (VVR.AX) Technical Analysis Report for Oct 12, 2018
Moving lower for the 2nd day in a row, VVR.AX ended the week -4.52% lower at 2.11 after losing $0.03 (-1.4%) today, notably underperforming the market (ASX 200, 0.2%). Today's close at 2.11 marks the lowest recorded closing price since June 13th.
Daily Candlestick Chart (VVR.AX as at Oct 12, 2018):
Friday's trading range was $0.05 (2.34%), that's far above last trading month's daily average range of $0.03. Weekly volatility is also higher, being way above the markets average with the monthly volatility being above average.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 2.09 during the day, the share found support at the 200-day moving average at 2.11. The last time this happened on June 14th, VVR.AX gained 0.47% 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 although could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 2.20.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our engine recognized today, the statistics for the Support/Resistance based condition "Bullish Bounce off SMA 200" stands out. Though it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for Viva Energy. Out of 3 times during the last ten years, VVR.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 six trading days, showing a win rate of 66.67% with an average market move of -0.22%.