WEB.AX finds buyers again around 14.85
Webjet Limited (WEB.AX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
WEB.AX ended the week -2.68% lower at 14.88 after losing $0.12 (-0.8%) today, underperforming the ASX 200 (-0.07%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WEB.AX as at Mar 15, 2019):
Friday's trading range has been $0.25 (1.66%), that's below the last trading month's daily average range of $0.58. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WEB.AX.
Three candlestick patterns are matching today's price action, the Last Engulfing Bottom Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle.
After having been unable to move lower than 14.83 in the previous session, the share found buyers again around the same price level today at 14.85. The last time this happened on March 8th, WEB.AX actually lost -1.57% on the following trading day.
While the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might speed up should prices move below the nearby swing low at 14.60 where further sell stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Webjet Limited. Out of 373 times, WEB.AX closed higher 51.74% 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 56.03% with an average market move of 1.97%.