SDAX closes above its opening price after recovering from early selling pressure
SDAX Performance-Index (SDAX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SDAX finished the week 6.63% higher at 10921.99 after edging higher €20.21 (0.19%) today. Trading up to €77.96 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, SDAX actually lost -0.82% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SDAX as at May 22, 2020):
Friday's trading range has been €221.91 (2.05%), that's slightly above the last trading month's daily average range of €192.26. 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 lower than usual for SDAX.
After trading down to 10745.03 earlier during the day, the index bounced off the key technical support level at 10750.76 (S1). The failure to close below the support could increase that levels importance as support going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the nearby swing high at 11031.15 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for SDAX. Out of 229 times, SDAX closed higher 62.88% 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 63.76% with an average market move of 0.55%.
With three out of the other three German Stock Indices closing higher today, the ones that stand out on the positive side are MDAX gaining 0.75% and TECDAX closing 0.63% higher. None of the markets ended the day in the red. Read more