BOBL climbs to highest close since December 11, 2019
Euro Bobl (BOBL) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BOBL finished Thursday at 134.26 gaining €0.18 (0.13%) on high volume. Today's close at 134.26 marks the highest recorded closing price since December 11, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 134.14, the Bobl confirmed its breakout through the previous session high after trading up to €0.16 above it intraday.
Daily Candlestick Chart (BOBL as at Jan 23, 2020):
Thursday's trading range has been €0.22 (0.16%), that's slightly below the last trading month's daily average range of €0.24. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BOBL.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, BOBL gained 0.04% on the following trading day.
The market managed to close above the 50-day moving average at 134.10 for the first time since January 3rd.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 134.53, upside momentum could accelerate should the 5-year bond be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 50" stand out. Its common bullish interpretation has been confirmed for Euro Bobl. Out of 83 times, BOBL closed higher 53.01% 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 72.29% with an average market move of 0.14%.