WPL.AX closes within previous day's range after lackluster session
Woodside Petroleum Ltd (WPL.AX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
WPL.AX ended the week 4.23% higher at 33.26 after losing $0.11 (-0.33%) today, but still slightly outperforming the ASX 50 (-0.34%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WPL.AX as at Jan 11, 2019):
Friday's trading range has been $0.38 (1.13%), that's far below the last trading month's daily average range of $0.58. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for WPL.AX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on December 31, 2018, WPL.AX lost -2.65% on the following trading day.
Prices are trading close to the key technical resistance level at 33.72 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 31.40.
Though the share is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the close-by swing high at 33.72 where further buy stops could get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Woodside Petroleum. Out of 326 times, WPL.AX closed higher 52.15% 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 seven trading days, showing a win rate of 52.15% with an average market move of 0.15%.