MDAX breaks back above 20-day moving average
MDAX Performance-Index (MDAX) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
MDAX ended Wednesday at 27241.08 surging €343.94 (1.28%). This is the biggest single-day gain in over a month. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (MDAX as at Dec 04, 2019):
Wednesday's trading range has been €381.11 (1.42%), that's far above the last trading month's daily average range of €247.38. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MDAX.
Two candlestick patterns are matching today's price action, the Bullish Belt-hold and the White Candle which are both known as bullish patterns. The last time a Bullish Belt-hold showed up on January 4th, MDAX gained 0.62% on the following trading day.
The stock index managed to close back above the 20-day moving average at 27190.93. After having been unable to move above 27252.07 in the prior session, the index ran into sellers again around the same price level today, missing to move higher than 27279.44.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Belt-hold" stand out. Its common bullish interpretation has been confirmed for MDAX. Out of 43 times, MDAX closed higher 67.44% 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 62.79% with an average market move of 0.99%.
With three out of the other three German Stock Indices closing higher today, the ones that stand out on the positive side are SDAX gaining 1.62% and TECDAX closing 1.23% higher. None of the markets ended the day in the red. Read more