SDAX pushes through Tuesday's high
SDAX Performance-Index (SDAX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SDAX finished Wednesday at 12519.05 gaining €70.37 (0.57%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 12484.51, the index confirmed its breakout through the prior session high after trading up to €34.54 above it intraday.
Daily Candlestick Chart (SDAX as at Sep 16, 2020):
Wednesday's trading range has been €52.30 (0.42%), that's far below the last trading month's daily average range of €167.26. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SDAX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on September 9th, SDAX actually lost -0.19% on the following trading day.
The market managed to close back above the 20-day moving average at 12510.56 for the first time since September 2nd. Prices are trading close to the key technical resistance level at 12524.91 (R1).
While 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.
As prices are trading close to September's high at 12755.05, upside momentum could speed up should SDAX mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for SDAX. Out of 93 times, SDAX closed higher 63.44% 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 62.37% with an average market move of 0.68%.
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 0.79% and MDAX closing 0.7% higher. None of the markets ended the day in the red. Read more