DAX closes below its opening price unable to hold early session gains
DAX Performance-Index (DAX) Technical Analysis Report for May 15, 2020 | by Techniquant Editorial Team
DAX ended the week -4.03% lower at 10465.17 after gaining €128.15 (1.24%) today. Trading €76.34 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 April 14th, DAX lost -3.90% 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 May 15, 2020):
Friday's trading range has been €164.65 (1.57%), that's below the last trading month's daily average range of €211.76. 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 lower than usual for DAX.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 10160.89 where further sell stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for DAX. Out of 127 times, DAX closed higher 55.91% 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 59.06% 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 BEL20 gaining 1.13% and FTSE closing 1.02% higher. None of the markets ended the day in the red. Read more