WOR.AX dominated by bulls lifting the market higher throughout the day
Worleyparsons Limited (WOR.AX) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WOR.AX finished Wednesday at 15.07 surging $0.65 (4.51%), strongly outperforming the ASX 200 (-0.25%). This is the biggest single-day gain in over a month. Today's close at 15.07 marks the highest recorded closing price since November 12, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (WOR.AX as at Feb 13, 2019):
Wednesday's trading range has been $0.42 (2.84%), that's slightly above the last trading month's daily average range of $0.40. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WOR.AX.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on January 25th, WOR.AX actually lost -2.56% on the following trading day.
The share managed to close above the 100-day moving average at 14.89 for the first time since October 12, 2018.
Crossing above the upper Bollinger Band for the first time since January 9th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 14.03 or signal the beginning of a strong momentum breakout leading to even higher prices.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Worleyparsons Limited. Out of 196 times, WOR.AX closed higher 54.59% 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 56.12% with an average market move of 0.50%.