DAX closes within previous day's range after lackluster session
DAX Performance-Index (DAX) Technical Analysis Report for Aug 13, 2020 | by Techniquant Editorial Team
DAX ended Thursday at 12993.71 losing €64.92 (-0.5%). 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 Aug 13, 2020):
Thursday's trading range has been €118.95 (0.91%), that's below the last trading month's daily average range of €193.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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. After moving higher in the previous session, the index closed lower but above the prior day's open today, forming a bearish Harami Candle.
After having been unable to move above 13101.12 in the previous session, the stock index ran into sellers again around the same price level today, missing to move higher than 13075.25. The last time this happened on August 5th, DAX lost -0.54% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 13101.12 where further buy stops might get triggered. Further buying could move prices higher should the market test July's nearby high at 13313.90.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for DAX. Out of 64 times, DAX closed higher 56.25% 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 59.38% with an average market move of 0.86%.
With four out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are FTSE losing -1.5% and N100 closing -0.64% lower. On the flipside the best performer has been TECDAX closing 0.6% higher. Read more