DAX closes higher for the 6th day in a row
DAX Performance-Index (DAX) Technical Analysis Report for Sep 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, DAX ended Wednesday at 12359.07 gaining €90.36 (0.74%). Today's close at 12359.07 marks the highest recorded closing price since July 29th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DAX as at Sep 11, 2019):
Wednesday's trading range has been €76.67 (0.62%), that's below the last trading month's daily average range of €128.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DAX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Buyers managed to take out the key technical resistance level at 12358.00 (now S1), which is likely to act as support going forward. The last time this happened on Monday, DAX gained 0.35% on the following trading day.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 12656.05, upside momentum could speed up should the index be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 24 times, DAX closed higher 66.67% 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 70.83% with an average market move of 0.23%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.26% and FTSE closing 0.96% higher. None of the markets ended the day in the red. Read more