MDAX closes within previous day's range after lackluster session
MDAX Performance-Index (MDAX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
MDAX finished the week 1.89% higher at 29214.88 after edging higher €42.21 (0.14%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (MDAX as at Feb 14, 2020):
Friday's trading range has been €144.90 (0.5%), that's far below the last trading month's daily average range of €263.40. 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 higher than usual for MDAX.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on November 29, 2019, MDAX lost -1.57% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 28942.25 where further sell 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 "Shooting Star" stand out. Its common bearish interpretation has been confirmed for MDAX. Out of 51 times, MDAX closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.98% with an average market move of -0.26%.
With three out of the other three German Stock Indices closing lower today, the ones that stand out on the negative side are TECDAX losing -0.44% and SDAX closing -0.09% lower. None of the markets managed to end the day in the green. Read more