On Monday, 22 Feb, I said that "AusGroup closed at 57c today on low volume. This is the second black candle day in a row experienced by AusGroup on low volume while the two preceding white candle days happened with relatively higher volume. This is a positive. The MFI has formed a higher low while the MACD continues to pull higher away from the signal line after forming a bullish crossover three sessions ago. Any continuing attempt to move higher will have to overcome resistance provided by a declining 20dMA which is at 59c today."
AusGroup broke that resistance provided by the declining 20dMA which is at 58c today on the back of heavy volume. MFI has crossed above 50% sharply but is far from overbought. Resistance is at 63c in the event of a continuation in the upmove. This resistance is likely to be strong as it is was a candlestick support level in addition to being where the 200dMA is currently flattening out at. Although the MACD has formed a bullish crossover, it is still below zero and this upmove is probably a great chance for stale bulls to reduce exposure. Given the nice white candle formed today, there is a good probability that price might continue to move higher tomorrow. Whether it will close higher or not is harder to say.
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