SCHATZ dominated by bears dragging the market lower throughout the day
Euro Schatz (SCHATZ) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
SCHATZ ended the week -0.02% lower at 111.915 after edging lower €0.005 (-0.0%) today. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SCHATZ as at Jan 11, 2019):
Friday's trading range has been €0.035 (0.03%), that's far below the last trading month's daily average range of €0.059. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SCHATZ. Prices continued to consolidate within a tight trading range between 111.875 and 111.945 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 111.905 (S1). After having been unable to move lower than 111.910 in the prior session, the market found buyers again around the same price level today at 111.910. The last time this happened on January 3rd, SCHATZ actually lost -0.04% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might accelerate should prices move below the nearby swing low at 111.875 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Euro Schatz. Out of 437 times, SCHATZ closed higher 54.00% 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 61.78% with an average market move of 0.04%.