SDAX finds buyers again around 11041.37
SDAX Performance-Index (SDAX) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
SDAX ended the week -3.5% lower at 11062.92 after edging higher €10.98 (0.1%) 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 (SDAX as at Jul 12, 2019):
Friday's trading range has been €66.95 (0.61%), that's below the last trading month's daily average range of €108.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SDAX.
After moving lower in the previous session, the index managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on June 7th, SDAX gained 1.78% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Unable to break through the key technical resistance level at 11085.76 (R1), the stock index closed below it after spiking up to 11108.32 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. After having been unable to move lower than 11045.49 in the previous session, the market found buyers again around the same price level today at 11041.37.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for SDAX. Out of 40 times, SDAX closed higher 65.00% 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 five trading days, showing a win rate of 57.50% with an average market move of 0.19%.
With two out of the other three German Stock Indices closing lower today, the ones that stand out on the negative side are TECDAX losing -0.49% and DAX closing -0.07% lower. On the flipside the best performer has been MDAX closing 0.22% higher. Read more