SDAX dominated by bulls lifting the market higher throughout the day
SDAX Performance-Index (SDAX) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
SDAX finished Wednesday at 12052.15 gaining €148.77 (1.25%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 12048.65, the index confirmed its breakout through the prior session high after trading up to €12.30 above it intraday.
Daily Candlestick Chart (SDAX as at Aug 05, 2020):
Wednesday's trading range has been €109.22 (0.91%), that's below the last trading month's daily average range of €149.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SDAX.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 12033.21 (now S1), which is likely to act as support going forward. After having been unable to move above 12048.65 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 12060.95. The last time this happened on July 23rd, SDAX lost -2.48% on the following trading day.
Although the stock index is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for SDAX. Out of 174 times, SDAX closed higher 56.32% 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 68.97% with an average market move of 0.96%.
With two out of the other three German Stock Indices closing higher today, the ones that stand out on the positive side are MDAX gaining 1.19% and DAX closing 0.47% higher. On the flipside the worst performer has been TECDAX closing -0.1% lower. Read more