TECDAX closes above its opening price after recovering from early selling pressure


TecDAX (TECDAX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team

Highlights

TECDAX breaks above 20-day moving average for the first time since February 21st
TECDAX closes above its opening price after recovering from early selling pressure
TECDAX closes higher for the 3rd day in a row
TECDAX runs into sellers again around 2592.21
TECDAX closes within previous day's range

Overview

Moving higher for the 3rd day in a row, TECDAX ended Thursday at 2592.21 gaining €49.09 (1.93%). Trading up to €36.55 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.

Daily Candlestick Chart (TECDAX as at Mar 26, 2020):

Daily technical analysis candlestick chart for TecDAX (TECDAX) as at Mar 26, 2020

Thursday's trading range has been €108.65 (4.31%), that's slightly below the last trading month's daily average range of €118.38. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TECDAX.

During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.

TecDAX managed to close above the 20-day moving average at 2561.86 for the first time since February 21st. Prices are trading close to the key technical resistance level at 2606.45 (R1). After having been unable to move above 2606.45 in the prior session, the index ran into sellers again around the same price level today, missing to move higher than 2592.21. The last time this happened on March 19th, TECDAX actually gained 3.34% on the following trading day.

Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Buying could accelerate should prices move above the nearby swing high at 2606.45 where further buy stops might get triggered.

Among the nine 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 398 times, TECDAX closed higher 61.31% 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 64.07% with an average market move of 0.57%.

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 2.9% and CAC closing 2.51% higher. None of the markets ended the day in the red. Read more


Market Conditions for TECDAX as at Mar 26, 2020

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