DAX closes within prior day's range
DAX Performance-Index (DAX) Technical Analysis Report for Jun 15, 2020 | by Techniquant Editorial Team
Moving lower for the 6th day in a row, DAX finished Monday at 11911.35 losing €37.93 (-0.32%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DAX as at Jun 15, 2020):
Monday's trading range has been €370.24 (3.17%), that's far above the last trading month's daily average range of €267.74. Weekly volatility is also higher, being 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 last time a White Candle showed up on June 5th, DAX actually lost -0.22% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for DAX. Out of 14 times, DAX closed higher 57.14% 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 71.43% with an average market move of 1.41%.
With three out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are FTSE losing -0.66% and CAC closing -0.49% lower. On the flipside the best performers have been BEL20 closing 1.3% higher and TECDAX gaining 0.36%. Read more