DAX breaks back above 20-day moving average

DAX Performance-Index (DAX) Technical Analysis Report for May 18, 2020 | by Techniquant Editorial Team


DAX soars, gaining €593.70 (5.67%) within a single day
DAX breaks back above 20-day moving average
DAX dominated by bulls lifting the market higher throughout the day
DAX closes higher for the 2nd day in a row
DAX ends the day on a bullish note closing near the high of the day


Moving higher for the 2nd day in a row, DAX finished Monday at 11058.87 surging €593.70 (5.67%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.

Daily Candlestick Chart (DAX as at May 18, 2020):

Daily technical analysis candlestick chart for DAX Performance-Index (DAX) as at May 18, 2020

Monday's trading range has been €411.98 (3.86%), that's far above the last trading month's daily average range of €221.66. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DAX.

One bullish candlestick pattern matches today's price action, the White Candle.

The market managed to close back above the 20-day moving average at 10656.50 for the first time since May 12th. When this moving average was crossed above the last time on April 3rd, DAX gained 5.77% on the following trading day.

While the index is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.

Further buying might move prices higher should the market test April's close-by high at 11235.57.

Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 142 times, DAX closed higher 57.04% 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 61.97% with an average market move of 0.53%.

With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are CAC gaining 5.16% and N100 closing 4.44% higher. None of the markets ended the day in the red. Read more

Market Conditions for DAX as at May 18, 2020

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