TECDAX closes within prior day's range
TecDAX (TECDAX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
TECDAX ended the month 1.74% higher at 3005.00 after gaining €12.42 (0.42%) today. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TECDAX as at Jul 31, 2020):
Friday's trading range has been €54.54 (1.82%), that's slightly above the last trading month's daily average range of €49.31. 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.
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.
Prices are trading close to the key technical support level at 2965.29 (S1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the nearby swing low at 2965.29 where further sell stops might get activated. As prices are trading close to July's low at 2918.90, downside momentum could speed up should TecDAX mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for TecDAX. Out of 526 times, TECDAX closed higher 52.47% 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 62.17% with an average market move of 0.88%.
With five out of the other five Major European Indices closing lower today, the ones that stand out on the negative side are BEL20 losing -2.01% and FTSE closing -1.54% lower. None of the markets managed to end the day in the green. Read more