SCHATZ breaks back above 100-day moving average
Euro Schatz (SCHATZ) Technical Analysis Report for Mar 27, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SCHATZ ended the week 0.0% higher at 112.195 after gaining €0.135 (0.12%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 112.085, 2-year Bond confirmed its breakout through the prior session high after trading up to €0.135 above it intraday.
Daily Candlestick Chart (SCHATZ as at Mar 27, 2020):
Friday's trading range has been €0.165 (0.15%), that's slightly below the last trading month's daily average range of €0.190. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for SCHATZ.
One bullish candlestick pattern matches today's price action, the White Candle.
The contract managed to close back above the 100-day moving average at 112.118. After spiking up to 112.220 during the day, the market found resistance at the 50-day moving average at 112.208. The last time this happened on Monday, SCHATZ lost -0.09% on the following trading day.
While the Schatz is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Euro Schatz. Out of 33 times, SCHATZ closed higher 51.52% 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 66.67% with an average market move of 0.04%.