MDAX pushes through Monday's high
MDAX Performance-Index (MDAX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MDAX ended the month 1.75% higher at 25840.30 after gaining €171.56 (0.67%) today. Closing above Monday's high at 25833.13, the market confirmed its breakout through the prior session high after trading up to €114.91 above it intraday.
Daily Candlestick Chart (MDAX as at Jun 30, 2020):
Tuesday's trading range has been €193.75 (0.75%), that's far below the last trading month's daily average range of €448.88. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MDAX.
The stock index managed to close back above the 200-day moving average at 25703.70. When this moving average was crossed above the last time on June 25th, MDAX actually lost -1.00% on the following trading day.
The index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 26077.34 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 25477.67 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for MDAX. Out of 557 times, MDAX closed higher 55.30% 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 62.12% with an average market move of 0.86%.
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 1.92% and DAX closing 0.64% higher. None of the markets ended the day in the red. Read more