DAX closes higher for the 3rd day in a row
DAX Performance-Index (DAX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DAX finished Thursday at 10000.96 gaining €126.70 (1.28%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DAX as at Mar 26, 2020):
Thursday's trading range has been €474.79 (4.93%), that's slightly below the last trading month's daily average range of €502.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DAX.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 9985.74 (now S1), which is likely to act as support going forward. After having been unable to move lower than 9460.91 in the prior session, the market found buyers again around the same price level today at 9526.17. The last time this happened on March 18th, DAX gained 2.00% on the following trading day.
Though the stock index is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 10137.62 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 162 times, DAX closed higher 59.88% 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 62.96% with an average market move of 0.48%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 2.9% and CAC closing 2.51% higher. None of the markets ended the day in the red. Read more