DAX closes below its opening price unable to hold early session gains
DAX Performance-Index (DAX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DAX finished the week 1.7% higher at 13744.21 after edging lower €1.22 (-0.01%) today. Trading €32.04 higher after the open, the stock index was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on January 30th, DAX lost -1.33% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DAX as at Feb 14, 2020):
Friday's trading range has been €60.39 (0.44%), that's far below the last trading month's daily average range of €125.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DAX.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Unable to break through the key technical resistance level at 13758.70 (R1), the index closed below it after spiking up to 13788.51 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for DAX. Out of 223 times, DAX closed higher 54.26% 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 63.23% with an average market move of 0.75%.
With four out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are FTSE losing -0.58% and TECDAX closing -0.44% lower. On the flipside the best performer has been BEL20 closing 0.06% higher. Read more