TECDAX breaks below Wednesday's low
TecDAX (TECDAX) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TECDAX finished Thursday at 2643.04 losing €53.63 (-1.99%). Today's close at 2643.04 marks the lowest recorded closing price since March 25th. Closing below Wednesday's low at 2693.39, the index confirmed its breakout through the prior session low after trading up to €87.98 below it intraday.
Daily Candlestick Chart (TECDAX as at Aug 15, 2019):
Thursday's trading range has been €100.19 (3.71%), that's far above the last trading month's daily average range of €50.74. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for TECDAX.
One bearish candlestick pattern matches today's price action, the Black Candle.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 2842.43.
While still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close below the lower Bollinger Band" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for TecDAX. Out of 126 times, TECDAX closed higher 55.56% 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 64.29% with an average market move of 2.01%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are FTSE losing -1.13% and DAX closing -0.7% lower. None of the markets managed to end the day in the green. Read more