SDAX runs into sellers again around 13067.83
SDAX Performance-Index (SDAX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
SDAX ended the week 3.38% higher at 13006.06 after edging lower €12.17 (-0.09%) today. Trading €28.66 higher after the open, the stock index was unable to hold its gains as the bears took control ending the day below its opening price. 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 Feb 14, 2020):
Friday's trading range has been €67.35 (0.52%), that's far below the last trading month's daily average range of €127.95. 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 significantly higher than usual for SDAX.
After having been unable to move above 13058.88 in the prior session, the index ran into sellers again around the same price level today, missing to move higher than 13067.83.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 12590.68. The last time this happened on December 17, 2019, SDAX lost -1.47% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for SDAX. Out of 190 times, SDAX closed higher 54.74% 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 63.16% with an average market move of 0.40%.
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 -0.44% and DAX closing -0.01% lower. On the flipside the best performer has been MDAX closing 0.14% higher. Read more