WSA.AX runs into sellers again around 2.55
Western Areas Limited (WSA.AX) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
WSA.AX finished the week -8.0% lower at 2.53 after gaining $0.02 (0.8%) today on low volume, outperforming the market (ASX 200, 0.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (WSA.AX as at Oct 12, 2018):
Friday's trading range was $0.12 (4.92%), that's above last trading month's daily average range of $0.10. Weekly volatility is also higher, being above the markets average with the monthly volatility being slightly below average.
Even with a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. The last time this happened on August 27th, WSA.AX gained 4.49% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 2.54 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 2.55.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our engine recognized today, the statistics for the OHLC Patterns based condition "Bullish Engulfing Candle" stands out. It's common interpretation of being bullish has so far been confirmed for Western Areas in the past. Out of 73 times during the last ten years, WSA.AX closed higher 61.64% of the time on the next trading day. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.53% with an average market move of 2.97%.