DAX finds buyers at key support level
DAX Performance-Index (DAX) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
DAX ended Tuesday at 13456.49 edging higher €4.97 (0.04%). Trading up to €77.00 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on January 6th, DAX gained 0.76% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DAX as at Jan 14, 2020):
Tuesday's trading range has been €125.70 (0.94%), that's slightly above the last trading month's daily average range of €123.19. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DAX.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Hanging Man.
After trading down to 13362.20 earlier during the day, the stock index bounced off the key technical support level at 13374.27 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 13548.20 where further buy stops could get triggered. Trading close to 2018's high at 13596.89 we might see further upside momentum if potential buy stops at the level get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 406 times, DAX closed higher 59.85% 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 59.11% with an average market move of 0.41%.
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 0.17% and N100 closing 0.15% higher. None of the markets ended the day in the red. Read more