TECDAX dominated by bulls lifting the market higher throughout the day
TecDAX (TECDAX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
TECDAX finished the week 5.78% higher at 3088.18 after gaining €19.29 (0.63%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TECDAX as at May 22, 2020):
Friday's trading range has been €61.07 (2.01%), that's slightly above the last trading month's daily average range of €58.25. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TECDAX. Prices continued to consolidate within a tight trading range between 3032.15 and 3108.28 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Hikkake Pattern showed up on May 13th, TECDAX actually lost -2.44% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 3108.28 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for TecDAX. Out of 82 times, TECDAX closed higher 64.63% 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 67.07% with an average market move of 1.26%.
With three out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are BEL20 gaining 0.75% and DAX closing 0.07% higher. On the flipside the worst performers have been FTSE closing -0.37% lower and CAC losing -0.02%. Read more