SDAX closes above its opening price after recovering from early selling pressure
SDAX Performance-Index (SDAX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SDAX ended the month 1.64% higher at 11535.83 after gaining €55.56 (0.48%) today. Trading up to €31.68 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 11508.78, the market confirmed its breakout through the prior session high after trading up to €48.25 above it intraday.
Daily Candlestick Chart (SDAX as at Jun 30, 2020):
Tuesday's trading range has been €80.39 (0.7%), that's far below the last trading month's daily average range of €207.58. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SDAX.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 5th, SDAX lost -0.28% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for SDAX. Out of 247 times, SDAX closed higher 56.28% 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 65.59% with an average market move of 0.63%.
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 MDAX closing 0.67% higher. None of the markets ended the day in the red. Read more