DAX closes within prior day's range
DAX Performance-Index (DAX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
DAX finished the week 5.82% higher at 11073.87 after edging higher €7.94 (0.07%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DAX as at May 22, 2020):
Friday's trading range has been €270.98 (2.49%), that's above the last trading month's daily average range of €223.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DAX.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the White Candle which are both known as bullish patterns. The last time a Bullish Hikkake Pattern showed up on May 13th, DAX actually lost -1.95% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 11246.91 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 82 times, DAX closed higher 52.44% 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 62.20% with an average market move of 0.62%.
With three out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 0.75% and TECDAX closing 0.63% higher. On the flipside the worst performers have been FTSE closing -0.37% lower and CAC losing -0.02%. Read more