TECDAX unable to break through key resistance level
TecDAX (TECDAX) Technical Analysis Report for Jul 08, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TECDAX finished Monday at 2917.80 losing €7.09 (-0.24%). 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 (TECDAX as at Jul 08, 2019):
Monday's trading range has been €21.74 (0.75%), that's below the last trading month's daily average range of €32.76. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TECDAX.
One neutral candlestick pattern matches today's price action, the Doji. The last time a Doji showed up on May 15th, TECDAX gained 2.02% on the following trading day.
Unable to break through the key technical resistance level at 2918.31 (R1), the market closed below it after spiking up to 2931.82 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 2913.16 in the prior session, the stock index found buyers again around the same price level today at 2910.08.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 2954.04 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for TecDAX. Out of 672 times, TECDAX closed higher 55.65% 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 62.05% with an average market move of 0.56%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are BEL20 losing -0.96% and DAX closing -0.2% lower. None of the markets managed to end the day in the green. Read more