TECDAX pops to highest close since December 14, 2000
TecDAX (TECDAX) Technical Analysis Report for Jan 17, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, TECDAX finished the week 1.53% higher at 3152.54 after gaining €22.93 (0.73%) today. Today's close at 3152.54 marks the highest recorded closing price since December 14, 2000. Trading up to €12.60 lower after the open, TecDAX managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 3144.52, the index confirmed its breakout through the previous session high after trading up to €16.89 above it intraday.
Daily Candlestick Chart (TECDAX as at Jan 17, 2020):
Friday's trading range has been €34.61 (1.1%), that's slightly below the last trading month's daily average range of €35.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for TECDAX.
After trading down to 3126.80 earlier during the day, the market bounced off the key technical support level at 3135.92 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on January 3rd, TECDAX actually lost -1.14% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop 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 down towards the center of the Bollinger Bands at 3067.29.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for TecDAX. Out of 392 times, TECDAX closed higher 61.73% 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 64.54% with an average market move of 0.69%.
With five out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are CAC gaining 1.02% and N100 closing 0.94% higher. None of the markets ended the day in the red. Read more