TECDAX stuck within tight trading range
TecDAX (TECDAX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
TECDAX finished the month -7.28% lower at 2953.65 after gaining €55.72 (1.92%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 2930.51, TecDAX confirmed its breakout through the prior session high after trading up to €27.55 above it intraday.
Daily Candlestick Chart (TECDAX as at Jun 30, 2020):
Tuesday's trading range has been €47.19 (1.62%), that's slightly below the last trading month's daily average range of €65.07. 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. Prices continued to consolidate within a tight trading range between 2877.33 and 2958.06 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Morning Star and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on June 23rd, TECDAX actually lost -2.42% on the following trading day.
The market managed to close back above the 200-day moving average at 2937.31 for the first time since June 23rd.
The stock index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for TecDAX. Out of 26 times, TECDAX closed higher 69.23% 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 76.92% with an average market move of 0.26%.
With three out of the other five Major European Indices closing higher today, the ones that stand out on the positive side are DAX gaining 0.64% and N100 closing 0.1% higher. On the flipside the worst performers have been FTSE closing -0.9% lower and CAC losing -0.19%. Read more