DAX breaks above 100-day moving average for the first time since February 21st
DAX Performance-Index (DAX) Technical Analysis Report for May 27, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, DAX finished Wednesday at 11657.69 gaining €153.04 (1.33%). Today's close at 11657.69 marks the highest recorded closing price since March 5th. Closing above Tuesday's high at 11544.35, the market confirmed its breakout through the previous session high after trading up to €202.85 above it intraday.
Daily Candlestick Chart (DAX as at May 27, 2020):
Wednesday's trading range has been €227.43 (1.97%), that's slightly above the last trading month's daily average range of €225.76. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DAX.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock index managed to close above the 100-day moving average at 11589.08 for the first time since February 21st. When this moving average was crossed above the last time on October 10, 2019, DAX gained 2.86% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 10923.81.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 135 times, DAX closed higher 54.07% 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 seven trading days, showing a win rate of 58.52% with an average market move of 0.15%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 2.17% and CAC closing 1.79% higher. On the flipside the worst performer has been TECDAX closing -2.04% lower. Read more