MDAX dominated by bulls lifting the market higher throughout the day
MDAX Performance-Index (MDAX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, MDAX ended Thursday at 21426.13 gaining €664.09 (3.2%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 21230.22, the index confirmed its breakout through the prior session high after trading up to €195.91 above it intraday.
Daily Candlestick Chart (MDAX as at Mar 26, 2020):
Thursday's trading range has been €1163.95 (5.67%), that's slightly above the last trading month's daily average range of €1012.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MDAX.
Three candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a White Candle showed up on Tuesday, MDAX gained 2.87% on the following trading day.
Prices are trading close to the key technical resistance level at 21720.98 (R1).
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for MDAX. Out of 686 times, MDAX closed higher 57.58% 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 62.97% with an average market move of 0.49%.
With three out of the other three German Stock Indices closing higher today, the ones that stand out on the positive side are TECDAX gaining 1.93% and SDAX closing 1.9% higher. None of the markets ended the day in the red. Read more