DAX ends the day on a bullish note closing near the high of the day
DAX Performance-Index (DAX) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DAX ended Wednesday at 12099.57 gaining €107.95 (0.9%). Trading up to €156.24 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (DAX as at May 15, 2019):
Wednesday's trading range has been €237.36 (1.97%), that's far above the last trading month's daily average range of €125.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DAX. Prices continued to consolidate within a tight trading range between 11844.47 and 12140.61 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Closing Marubozu.
After trading as low as 11862.21 during the day, the index found support at the 50-day moving average at 11869.43. The last time this happened on Monday, DAX gained 0.97% on the following trading day.
While the stock index is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 12140.61 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 20 times, DAX closed higher 70.00% 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 75.00% with an average market move of 1.25%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are FTSE gaining 0.77% and CAC closing 0.62% higher. On the flipside the worst performer has been BEL20 closing -0.04% lower. Read more