DAX breaks back above 50-day moving average
DAX Performance-Index (DAX) Technical Analysis Report for Oct 09, 2019 | by Techniquant Editorial Team
DAX ended Wednesday at 12094.26 gaining €124.06 (1.04%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DAX as at Oct 09, 2019):
Wednesday's trading range has been €212.41 (1.77%), that's far above the last trading month's daily average range of €126.28. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DAX.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock index managed to close back above the 50-day moving average at 12007.55. When this moving average was crossed above the last time on Monday, DAX actually lost -1.05% on the following trading day. After spiking up to 12165.53 during the day, the index found resistance at the 100-day moving average at 12125.07. After having been unable to move lower than 11933.02 in the prior session, the market found buyers again around the same price level today at 11953.12.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Further selling might move prices lower should the market test September's nearby low at 11869.28.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 617 times, DAX closed higher 53.00% 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 57.70% with an average market move of 0.30%.
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 1.28% and CAC closing 0.78% higher. None of the markets ended the day in the red. Read more