SDAX finds buyers again around 12404.13
SDAX Performance-Index (SDAX) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team
Moving lower for the 4th day in a row, SDAX finished Wednesday at 12429.75 edging lower €23.42 (-0.19%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SDAX as at Jan 15, 2020):
Wednesday's trading range has been €65.51 (0.53%), that's below the last trading month's daily average range of €113.03. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SDAX.
After having been unable to move lower than 12416.17 in the prior session, the index found buyers again around the same price level today at 12404.13. The last time this happened on December 19, 2019, SDAX gained 0.05% on the following trading day.
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 12373.74 where further sell stops might get triggered. With prices trading close to this year's high at 12665.46, upside momentum could accelerate should the stock index be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for SDAX. Out of 52 times, SDAX closed higher 53.85% 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 69.23% with an average market move of 1.17%.
With two out of the other three German Stock Indices closing lower today, the ones that stand out on the negative side are MDAX losing -0.19% and DAX closing -0.18% lower. On the flipside the best performer has been TECDAX closing 0.15% higher. Read more