DAX breaks back above 200-day moving average
DAX Performance-Index (DAX) Technical Analysis Report for Jun 16, 2020 | by Techniquant Editorial Team
DAX ended Tuesday at 12315.66 surging €404.31 (3.39%).
Daily Candlestick Chart (DAX as at Jun 16, 2020):
Tuesday's trading range has been €301.47 (2.48%), that's above the last trading month's daily average range of €262.21. 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.
The market managed to close back above the 200-day moving average at 12143.94 for the first time since June 10th. When this moving average was crossed above the last time on June 3rd, DAX actually lost -0.45% on the following trading day.
Although 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 Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for DAX. Out of 28 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 67.86% with an average market move of 0.71%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 3.24% and N100 closing 3.02% higher. None of the markets ended the day in the red. Read more