DAX closes higher for the 2nd day in a row
DAX Performance-Index (DAX) Technical Analysis Report for Jun 17, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DAX ended Wednesday at 12382.14 gaining €66.48 (0.54%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DAX as at Jun 17, 2020):
Wednesday's trading range has been €144.06 (1.17%), that's far below the last trading month's daily average range of €256.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DAX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 12272.99 (S1). After having been unable to move above 12434.27 in the previous session, the index ran into sellers again around the same price level today, failing to move higher than 12432.23. The last time this happened on May 20th, DAX lost -1.41% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 12434.27 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for DAX. Out of 777 times, DAX closed higher 53.80% 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 58.94% with an average market move of 0.48%.
With four out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.42% and CAC closing 0.88% higher. On the flipside the worst performer has been BEL20 closing -0.2% lower. Read more