DAX finds support at 50-day moving average


DAX Performance-Index (DAX) Technical Analysis Report for May 14, 2020 | by Techniquant Editorial Team

Highlights

DAX finds support at 50-day moving average
DAX closes lower for the 4th day in a row
DAX ends the day indecisive

Overview

Moving lower for the 4th day in a row, DAX ended Thursday at 10337.02 losing €205.64 (-1.95%). 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 May 14, 2020):

Daily technical analysis candlestick chart for DAX Performance-Index (DAX) as at May 14, 2020

Thursday's trading range has been €309.67 (2.97%), that's far above the last trading month's daily average range of €213.46. 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 Hammer. The last time a Hammer showed up on March 19th, DAX gained 3.70% on the following trading day.

After trading as low as 10164.41 during the day, the index found support at the 50-day moving average at 10247.53.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 50" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 41 times, DAX closed higher 68.29% 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 eight trading days, showing a win rate of 65.85% with an average market move of 0.00%.

With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are FTSE losing -2.75% and BEL20 closing -2.5% lower. None of the markets managed to end the day in the green. Read more


Market Conditions for DAX as at May 14, 2020

Loading Market Conditions for DAX (DAX Performance-Index)...
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