DAX closes lower for the 5th day in a row
DAX Performance-Index (DAX) Technical Analysis Report for Jun 12, 2020 | by Techniquant Editorial Team
Moving lower for the 5th day in a row, DAX ended the week -6.99% lower at 11949.28 after edging lower €21.01 (-0.18%) today. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (DAX as at Jun 12, 2020):
Friday's trading range has been €343.97 (2.9%), that's far above the last trading month's daily average range of €257.46. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DAX.
One bullish candlestick pattern matches today's price action, the Inverted Hammer. The last time a Inverted Hammer showed up on July 18, 2019, DAX gained 0.26% on the following trading day.
Prices are trading close to the key technical resistance level at 12207.77 (R1).
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Inverted Hammer" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 9 times, DAX closed higher 55.56% 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 six trading days, showing a win rate of 66.67% with an average market move of -0.18%.
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 0.76% and N100 closing 0.6% higher. On the flipside the worst performer has been TECDAX closing -0.34% lower. Read more