DAX closes lower for the 2nd day in a row
DAX Performance-Index (DAX) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DAX ended Thursday at 11412.67 losing €79.99 (-0.7%). Today's close at 11412.67 marks the lowest recorded closing price since March 25th. Closing below Wednesday's low at 11459.37, the market confirmed its breakout through the prior session low after trading up to €192.89 below it intraday.
Daily Candlestick Chart (DAX as at Aug 15, 2019):
Thursday's trading range has been €263.53 (2.29%), that's far above the last trading month's daily average range of €178.64. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for DAX.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for DAX. Out of 387 times, DAX closed higher 56.85% 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 58.66% with an average market move of 0.62%.
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 -1.99% and FTSE closing -1.13% lower. None of the markets managed to end the day in the green. Read more