TECDAX closes within prior day's range after lackluster session
TecDAX (TECDAX) Technical Analysis Report for Sep 13, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, TECDAX ended the week 0.36% higher at 2872.07 after edging higher €3.83 (0.13%) today. Today's close at 2872.07 marks the highest recorded closing price since August 1st. 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 Sep 13, 2019):
Friday's trading range has been €16.41 (0.57%), that's far below the last trading month's daily average range of €37.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for TECDAX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on Monday, TECDAX lost -1.41% on the following trading day.
Unable to break through the key technical resistance level at 2876.26 (R1), the stock index closed below it after spiking up to 2877.98 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the nearby swing high at 2885.26 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for TecDAX. Out of 169 times, TECDAX closed higher 56.80% 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 63.31% with an average market move of 0.84%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 0.88% and DAX closing 0.47% higher. None of the markets ended the day in the red. Read more