DAX still stuck within tight trading range
DAX Performance-Index (DAX) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
DAX finished the week 1.11% higher at 10887.46 after losing €34.13 (-0.31%) today. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DAX as at Jan 11, 2019):
Friday's trading range has been €129.08 (1.18%), that's below the last trading month's daily average range of €166.32. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for DAX. Prices continued to consolidate within a tight trading range between 10681.27 and 10961.92 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical support level at 10788.05 (S1).
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 10961.92 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 10788.05 where further sell stops could get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for DAX. Out of 757 times, DAX closed higher 54.95% 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 58.52% with an average market move of 0.49%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are TECDAX losing -0.54% and CAC closing -0.51% lower. None of the markets managed to end the day in the green. Read more