DAX closes lower for the 3rd day in a row
DAX Performance-Index (DAX) Technical Analysis Report for Jun 10, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, DAX ended Wednesday at 12530.16 losing €87.83 (-0.7%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DAX as at Jun 10, 2020):
Wednesday's trading range has been €292.83 (2.3%), that's above the last trading month's daily average range of €247.72. 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 strongly higher than usual for DAX.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 12502.45 in the previous session, the market found buyers again around the same price level today at 12471.06. The last time this happened on May 20th, DAX actually lost -1.41% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for DAX. Out of 130 times, DAX closed higher 54.62% 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 60.00% with an average market move of 0.53%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are BEL20 losing -1.28% and CAC closing -0.82% lower. None of the markets managed to end the day in the green. Read more